Prudential (PRU) Stock Moves -1.05%: What You Should Know
Prudential (PRU) closed the most recent trading day at $105.09, moving -1.05% from the previous trading session. This change was narrower than the S&P 500's 1.08% loss on the day. Meanwhile, the Dow lost 0.81%, and the Nasdaq, a tech-heavy index, added 0.22%.
Coming into today, shares of the financial services company had gained 1.88% in the past month. In that same time, the Finance sector gained 2.11%, while the S&P 500 gained 1.03%.
Investors will be hoping for strength from Prudential as it approaches its next earnings release. On that day, Prudential is projected to report earnings of $2.77 per share, which would represent a year-over-year decline of 26.91%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $12.65 billion, down 3.48% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $11.74 per share and revenue of $52.43 billion, which would represent changes of -19.48% and -13.66%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Prudential. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.77% higher within the past month. Prudential currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Prudential is holding a Forward P/E ratio of 9.05. For comparison, its industry has an average Forward P/E of 10.86, which means Prudential is trading at a discount to the group.
Also, we should mention that PRU has a PEG ratio of 1.01. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Insurance - Multi line was holding an average PEG ratio of 1.21 at yesterday's closing price.
The Insurance - Multi line industry is part of the Finance sector. This group has a Zacks Industry Rank of 193, putting it in the bottom 24% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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