Back to top

Image: Bigstock

Prudential (PRU) Outpaces Stock Market Gains: What You Should Know

Read MoreHide Full Article

Prudential (PRU - Free Report) closed the most recent trading day at $101.43, moving +0.85% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.42%.

Coming into today, shares of the financial services company had lost 1.84% in the past month. In that same time, the Finance sector lost 0.27%, while the S&P 500 gained 2.64%.

Investors will be hoping for strength from PRU as it approaches its next earnings release, which is expected to be August 3, 2021. In that report, analysts expect PRU to post earnings of $3.04 per share. This would mark year-over-year growth of 64.32%. Our most recent consensus estimate is calling for quarterly revenue of $13.83 billion, up 5.75% from the year-ago period.

PRU's full-year Zacks Consensus Estimates are calling for earnings of $13.16 per share and revenue of $56.06 billion. These results would represent year-over-year changes of +28.89% and +2.25%, respectively.

It is also important to note the recent changes to analyst estimates for PRU. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.34% higher within the past month. PRU is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, PRU is currently trading at a Forward P/E ratio of 7.64. This valuation marks a discount compared to its industry's average Forward P/E of 10.31.

We can also see that PRU currently has a PEG ratio of 0.7. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Insurance - Multi line stocks are, on average, holding a PEG ratio of 1.63 based on yesterday's closing prices.

The Insurance - Multi line industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 165, which puts it in the bottom 36% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Prudential Financial, Inc. (PRU) - free report >>

Published in