Back to top

Image: Bigstock

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

Read MoreHide Full Article

Prudential (PRU - Free Report) closed the most recent trading day at $110.19, moving -0.38% from the previous trading session. This move lagged the S&P 500's daily gain of 2.44%. Elsewhere, the Dow gained 1.65%, while the tech-heavy Nasdaq added 0.28%.

Heading into today, shares of the financial services company had gained 1.82% over the past month, outpacing the Finance sector's loss of 3.64% and the S&P 500's loss of 9.65% in that time.

Wall Street will be looking for positivity from Prudential as it approaches its next earnings report date. This is expected to be February 3, 2022. The company is expected to report EPS of $2.39, down 18.43% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $13.45 billion, down 10.75% from the year-ago period.

It is also important to note the recent changes to analyst estimates for Prudential. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.09% lower. Prudential is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, Prudential is holding a Forward P/E ratio of 8.8. This represents a discount compared to its industry's average Forward P/E of 9.66.

Also, we should mention that PRU has a PEG ratio of 0.98. 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. Insurance - Multi line stocks are, on average, holding a PEG ratio of 1.12 based on yesterday's closing prices.

The Insurance - Multi line industry is part of the Finance sector. This group has a Zacks Industry Rank of 201, putting it in the bottom 22% 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