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

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Prudential (PRU - Free Report) closed the most recent trading day at $113.99, moving -1.59% from the previous trading session. This move lagged the S&P 500's daily gain of 0.57%. Meanwhile, the Dow gained 0.7%, and the Nasdaq, a tech-heavy index, added 0.08%.

Prior to today's trading, shares of the financial services company had lost 4.16% over the past month. This has was narrower than the Finance sector's loss of 6.24% and the S&P 500's loss of 5.26% in that time.

Prudential will be looking to display strength as it nears its next earnings release, which is expected to be May 3, 2022. In that report, analysts expect Prudential to post earnings of $2.67 per share. This would mark a year-over-year decline of 35.04%. Meanwhile, our latest consensus estimate is calling for revenue of $14.18 billion, down 0.26% from the prior-year quarter.

PRU's full-year Zacks Consensus Estimates are calling for earnings of $11.48 per share and revenue of $54.55 billion. These results would represent year-over-year changes of -21.26% and -10.16%, respectively.

Investors might also notice recent changes to analyst estimates for Prudential. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 5.17% lower. Prudential is currently sporting a Zacks Rank of #4 (Sell).

Investors should also note Prudential's current valuation metrics, including its Forward P/E ratio of 10.09. Its industry sports an average Forward P/E of 10.46, so we one might conclude that Prudential is trading at a discount comparatively.

It is also worth noting that PRU currently has a PEG ratio of 1.12. 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. The Insurance - Multi line was holding an average PEG ratio of 1.31 at yesterday's closing price.

The Insurance - Multi line industry is part of the Finance sector. This group has a Zacks Industry Rank of 200, putting it in the bottom 21% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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