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Should Prudential Financial (PRU) Stock Be in Your Portfolio?
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Prudential Financial, Inc. (PRU - Free Report) saw its shares gain 45.11% over the last one year, significantly outperforming the Multi line industry’s growth of 24.07%. We expect the company to retain its momentum owing to a number of positives.
The multi line insurer will continue to benefit from its reach and in-depth expertise in the pension risk transfer (PRT) business. Moreover, the company is on track to establish its leadership position in the PRT market, which possesses excellent potential and is a perfect fit for the company’s skills in the management of group annuity.
Moreover, the multi line insurer’s international operations have positioned it well for long-term growth. In addition, the company is expected to benefit from the AFP Habitat buyout, which was completed in the first quarter of 2016. The transaction is anticipated to result in stable growth, steady earnings, and cash flow generation. Further, Prudential Financial remains upbeat about the transaction as it expanded its international footprint.
Prudential Financial remains well poised for growth on the back of its high performing asset management business. Recently, Prudential Investments – an affiliate of Prudential Financial – introduced Prudential International Bond Fund to extend its multi-sector fixed income fund lineup. The fund will provide investors an opportunity to increase their income and capital through investments in various sectors in markets across the world. The fund will be substantially value accretive to Prudential Investments – the retail distribution business of PGIM – the global investment management business of Prudential Financial.
Notably, Prudential Financial carries a VGM score of A. Here V stands for Value, G for Growth and M for Momentum and the score is a weighted combination of these three scores. In fact, valuation at the current level is attractive as the stock is trading at a forward P/E ratio of 10.0, a 13.8% discount to the industry average of 11.6.
Prudential Financial is set to report fourth-quarter results on Feb 8. Our proven model shows that it is likely to beat on earnings this time around. This is because the company has an Earnings ESP of +0.43% along side a favorable Zacks Rank #2 (Buy). The company seen its full-year 2016 estimates moving north in the last two months. We note that the multi line insurer delivered positive surprise in one of the last four quarters with an average miss of 10.66%.
Radian Group offers mortgage and real estate products and services in the U.S. The company delivered positive surprises in two of the last four quarters with an average beat of 5.87%.
The Hartford Financial offers insurance and financial services to individual and business customers in the U.S. The company delivered positive surprises in two of the last four quarters but with an average miss of 11.69%.
Kemper Corporation is a diversified insurance holding company that offers property and casualty, as well as life and health insurance to individuals and businesses in the U.S. The company delivered positive surprises in one of the last four quarters but with an average miss of 47.62%.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>
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Should Prudential Financial (PRU) Stock Be in Your Portfolio?
Prudential Financial, Inc. (PRU - Free Report) saw its shares gain 45.11% over the last one year, significantly outperforming the Multi line industry’s growth of 24.07%. We expect the company to retain its momentum owing to a number of positives.
The multi line insurer will continue to benefit from its reach and in-depth expertise in the pension risk transfer (PRT) business. Moreover, the company is on track to establish its leadership position in the PRT market, which possesses excellent potential and is a perfect fit for the company’s skills in the management of group annuity.
Moreover, the multi line insurer’s international operations have positioned it well for long-term growth. In addition, the company is expected to benefit from the AFP Habitat buyout, which was completed in the first quarter of 2016. The transaction is anticipated to result in stable growth, steady earnings, and cash flow generation. Further, Prudential Financial remains upbeat about the transaction as it expanded its international footprint.
Prudential Financial remains well poised for growth on the back of its high performing asset management business. Recently, Prudential Investments – an affiliate of Prudential Financial – introduced Prudential International Bond Fund to extend its multi-sector fixed income fund lineup. The fund will provide investors an opportunity to increase their income and capital through investments in various sectors in markets across the world. The fund will be substantially value accretive to Prudential Investments – the retail distribution business of PGIM – the global investment management business of Prudential Financial.
Notably, Prudential Financial carries a VGM score of A. Here V stands for Value, G for Growth and M for Momentum and the score is a weighted combination of these three scores. In fact, valuation at the current level is attractive as the stock is trading at a forward P/E ratio of 10.0, a 13.8% discount to the industry average of 11.6.
Prudential Financial is set to report fourth-quarter results on Feb 8. Our proven model shows that it is likely to beat on earnings this time around. This is because the company has an Earnings ESP of +0.43% along side a favorable Zacks Rank #2 (Buy). The company seen its full-year 2016 estimates moving north in the last two months. We note that the multi line insurer delivered positive surprise in one of the last four quarters with an average miss of 10.66%.
Other Stocks to Consider
Investors interested in stocks from the same space might also consider Radian Group Inc. (RDN - Free Report) , The Hartford Financial Services Group, Inc. (HIG - Free Report) , and Kemper Corporation (KMPR - Free Report) . Each of these stocks holds the same Zacks Rank as Prudential Financial. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Radian Group offers mortgage and real estate products and services in the U.S. The company delivered positive surprises in two of the last four quarters with an average beat of 5.87%.
The Hartford Financial offers insurance and financial services to individual and business customers in the U.S. The company delivered positive surprises in two of the last four quarters but with an average miss of 11.69%.
Kemper Corporation is a diversified insurance holding company that offers property and casualty, as well as life and health insurance to individuals and businesses in the U.S. The company delivered positive surprises in one of the last four quarters but with an average miss of 47.62%.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>