|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||27.75 - 28.04|
|52 Week Range||22.97 - 30.33|
|PE Ratio (TTM)||N/A|
|Expense Ratio (net)||0.14%|
What Lies Ahead for Prudential Financial? Of the 18 analysts covering Prudential Financial (PRU) in April 2018, six have recommended “strong buy,” five have recommended “buy,” and seven have recommended “hold.” There were no “strong sell” or “sell” recommendations.
Prudential Financial’s (PRU) 4Q17 results were boosted by the Tax Cuts and Jobs Act. During the quarter, it had EPS (earnings per share) of $2.69, while peers (XLF) MetLife (MET), American International Group (AIG), and The Hartford (HIG) had EPS of $0.64, $0.57, and $0.81, respectively.
Morgan Stanley (MS) stock has fallen 4.6% over the past three months and risen 28.7% over the past year. In comparison, the overall sector (XLF) has fallen 6.4% and risen 19.1%, respectively. The bank’s asset management offerings, interest income, and consistent trading revenue have continued to support its strong performance.
Prudential Financial’s (PRU) asset management business is overseen by PGIM. According to the company, its asset management business has a strong revenue base. The company generates asset management fees from different asset classes. In 2017, 45% of the company’s asset management fees were from public fixed income, 8% were from private fixed income and equity, 17% were from real estate assets, 25% were from public equity, and 5% were from commercial mortgages.
Wall Street analysts were upbeat about investment bankers (XLF) in 1Q18 due to an expected spike in trading. Major banks managed to beat estimates and the overall forecast for 2Q18 is lower.
Morgan Stanley’s (MS) total assets under management rose 8% YoY (year-over-year) to $2.4 trillion on March 31, 2018, helped by a higher valuation of holdings and flow. Quarter-over-quarter, its total assets under management were flat, reflecting lower valuation increases and offset by new, long-term flow.
Morgan Stanley (MS) benefited from higher volatility and posted strong operating numbers. The bank’s Institutional Securities segment posted net income of $2.1 billion, compared with $1.7 billion in 1Q17. The segment’s top line rose to $6.1 billion from $5.2 billion in 1Q17, largely due to sales and trading amid higher market volatility.
Morgan Stanley (MS) posted EPS (earnings per share) of $1.45 in 1Q18, higher than analysts’ estimate of $1.25 and its EPS of $1 in 1Q17. The investment bank benefited from market volatility and higher trading revenue across product offerings. It posted net revenue of $11.1 billion and net income of $2.6 billion, representing growth of 14% and 40%, respectively, helped by lower tax, higher trading, and improved efficiency.
What Lies Ahead for Prudential Financial? Insurance giant Prudential Financial’s (PRU) investment management business saw its operating income rise to $306 million in 4Q17 from $224 million in 4Q16, boosted by performance, transactions, commercial mortgages, and strategic investing. This positive momentum was offset by asset management fees increasing due to higher AUM (assets under management).
In 4Q17, Prudential Financial’s (PRU) life planner operations’ adjusted operating income fell to $383 million from $395 million in 4Q16 due to foreign currency exchange, policies, and increased expenses. In 4Q17, life planner operations’ claims were in line with expectations. The international insurance division’s adjusted operating income rose to $777 million in 4Q17 from $755 million in 4Q16.
JPMorgan Chase (JPM) stock has generated a return of 13.1% in the last six months and 29.0% in the last year. In comparison, the financial sector (XLF) has grown 5.1% in the last six months and 18.6% in the last year, respectively.
Prudential Financial’s (PRU) individual annuities segment’s adjusted operating income rose by $119 million to $541 million in 4Q17 from $422 million in 4Q16. However, this amount includes the impact of significant items. If this impact is excluded, its operating income rose $103 million, boosted by policy fees.
Wall Street analysts are maintaining their bullish outlook on US banks (XLF) amid trade wars, lower taxes, and a push for domestic manufacturing. Among major bankers, JPMorgan Chase (JPM) has garnered 13 “buys” or “strong buys” out of 28 analysts in April 2018. Thirteen analysts have recommended “holds” on JPMorgan, whereas one has given it an “underperform” rating, and one has given it a “sell.” JPMorgan Chase commands a one-year mean price target of $121.78 compared to its current price of $110.30, reflecting average growth.
PGIM, which distributes Prudential Financial’s (PRU) retail products, has introduced the PGIM Ultra-Short Bond ETF, an actively managed fund focusing on capital appreciation and income generation. The diversified fund aims to manage risk.
Prudential Financial (PRU) has a positive outlook for its 2017 results. Wall Street analysts’ high and low EPS (earnings per share) estimates for Prudential are $3.10 and $2.61, respectively, for 1Q18. Their average estimate of $2.97 implies a quarter-over-quarter and year-over-year rise. In comparison, peers (XLF) American International Group (AIG), MetLife (MET), and The Hartford (HIG) are expected to post EPS of $1.28, $1.17, and $1.09, respectively, in the March 2018 quarter.
What to play in the background while you trade derivatives contracts -- a short playlist of recommendations.
Investment and commercial banks (XLF) were expected to benefit from higher trading revenues and lower taxes in 1Q18. All major bankers have beat estimates, reflecting strong operating performance and comfort from lower taxes. Among major bankers, Goldman Sachs (GS) commands a mixed rating outlook, with 10 out of 27 analysts calling for “strong buy or buy” ratings. Fifteen analysts have given “neutral” ratings, and four have assigned “underperform.”
JPMorgan Chase (JPM) paid $6.7 billion to its shareholders in the form of dividends and repurchases in 1Q18, with repurchases seeing 65% YoY (year-over-year) growth and dividends rising 12% in the same period. In terms of its stock, the bank has increased its buyback amount by 29% to 41.4 million shares. Because tax cuts allow banks (XLF) to generate higher operating flows, repurchases are expected to remain upbeat in the upcoming quarters.
The financial sector rose on Thursday, bucking the negative tone of the overall market and gaining as the top-performing sector of the day. The group rose 0.8%. Among the biggest gainers were American ...
Goldman Sachs’s (GS) Investing and Lending segment posted net revenues of $2.1 billion—growth of 43% from 1Q17 and 26% from 4Q17. The segment benefited from higher interest spreads and credit offtake. Net revenues from lending grew 53% to $1.0 billion, helped by higher net interest income and improved lending. Equity securities revenues stood at $1.1 billion, marking growth of 34%. These revenues found help from gains from private equities on select equities, and they were partially offset by lower gains from listed entities. ...
JPMorgan Chase’s (JPM) Asset Management segment managed $16 billion in long-term offerings and outflows of $21 billion in its liquidity products in 1Q18.
President Trump’s back and forth on the Trans-Pacific Partnership deal is raising new questions over whether the U.S. might try to get back in. Yahoo Finance’s Alexis Christoforous and Rick Newman answer your questions.