We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Principal Financial Receives Rating Action from A. M. Best
Read MoreHide Full Article
Principal Financial Group, Inc.’s (PFG - Free Report) senior unsecured debt recently received indicative Long-Term Issue Credit Ratings of “a-” from A.M. Best. The rating agency also assigned Long-Term Issue Credit Ratings of “bbb+” to the subordinated debt and “bbb” to preferred shares. The outlook for the ratings was stable.
The ratings came on the back of the company’s diverse products and distribution channels, sustained improvement in operating results, impressive business profile, solid risk-adjusted capitalization and strong balance sheet. However, exposure to higher risk assets (real-estate related assets and lower-rated bonds) and exposure to political and financial risk in countries where it has business are headwinds.
Rating affirmations or upgrades from credit rating agencies play an important part in retaining investor confidence on the stock as well as maintaining credit worthiness in the market. Therefore, rating downgrades adversely affect the business as well as increase the costs of future debt issuances. We believe that strong ratings will help Principal Financial retain investor confidence and help it write more businesses going forward.
Shares of Principal Financial gained 10.58% year to date, significantly outperforming the Zacks categorized Investment Management industry’s increase of 6.35%. We believe deeper focus on fee-based revenues, steadily increasing asset under management, impressive inorganic growth story, and a strong balance sheet will continue to drive the stock higher in the future.
Principal Financial carries Zacks Rank #2 (Buy).
Stocks that Warrant a Look
Investors interested in investment managers can also consider AllianceBernstein Holding L.P. (AB - Free Report) , Federated Investors Inc. , and Lazard Ltd (LAZ - Free Report) .
AllianceBernstein provides services to investment companies, pension and profit sharing plans, banks and thrift institutions, trusts, estates, government agencies, charitable organizations, individuals, corporations, and other business entities. The company had a positive average earnings surprise of 9.33% in the last four quarters. The company sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Federated Investors is one of the major investment managers in the United States. The company had a positive average earnings surprise of 5.71% in the last four quarters. The company sports a Zacks Rank #1.
Lazard operates as a financial advisory and asset management firm worldwide. The company had a positive average earnings surprise of 7.85% in the last four quarter. The company holds a Zacks Rank #2.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
Image: Bigstock
Principal Financial Receives Rating Action from A. M. Best
Principal Financial Group, Inc.’s (PFG - Free Report) senior unsecured debt recently received indicative Long-Term Issue Credit Ratings of “a-” from A.M. Best. The rating agency also assigned Long-Term Issue Credit Ratings of “bbb+” to the subordinated debt and “bbb” to preferred shares. The outlook for the ratings was stable.
The ratings came on the back of the company’s diverse products and distribution channels, sustained improvement in operating results, impressive business profile, solid risk-adjusted capitalization and strong balance sheet. However, exposure to higher risk assets (real-estate related assets and lower-rated bonds) and exposure to political and financial risk in countries where it has business are headwinds.
Rating affirmations or upgrades from credit rating agencies play an important part in retaining investor confidence on the stock as well as maintaining credit worthiness in the market. Therefore, rating downgrades adversely affect the business as well as increase the costs of future debt issuances. We believe that strong ratings will help Principal Financial retain investor confidence and help it write more businesses going forward.
Shares of Principal Financial gained 10.58% year to date, significantly outperforming the Zacks categorized Investment Management industry’s increase of 6.35%. We believe deeper focus on fee-based revenues, steadily increasing asset under management, impressive inorganic growth story, and a strong balance sheet will continue to drive the stock higher in the future.
Principal Financial carries Zacks Rank #2 (Buy).
Stocks that Warrant a Look
Investors interested in investment managers can also consider AllianceBernstein Holding L.P. (AB - Free Report) , Federated Investors Inc. , and Lazard Ltd (LAZ - Free Report) .
AllianceBernstein provides services to investment companies, pension and profit sharing plans, banks and thrift institutions, trusts, estates, government agencies, charitable organizations, individuals, corporations, and other business entities. The company had a positive average earnings surprise of 9.33% in the last four quarters. The company sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Federated Investors is one of the major investment managers in the United States. The company had a positive average earnings surprise of 5.71% in the last four quarters. The company sports a Zacks Rank #1.
Lazard operates as a financial advisory and asset management firm worldwide. The company had a positive average earnings surprise of 7.85% in the last four quarter. The company holds a Zacks Rank #2.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>