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

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In the latest trading session, Prudential (PRU - Free Report) closed at $94.73, marking a -1.28% move from the previous day. This change lagged the S&P 500's 0.14% gain on the day. At the same time, the Dow lost 0.18%, and the tech-heavy Nasdaq gained 1.54%.

Heading into today, shares of the financial services company had lost 6.65% over the past month, lagging the Finance sector's loss of 4.43% and the S&P 500's loss of 4.07% in that time.

Investors will be hoping for strength from Prudential as it approaches its next earnings release. In that report, analysts expect Prudential to post earnings of $3.05 per share. This would mark a year-over-year decline of 3.79%. Meanwhile, our latest consensus estimate is calling for revenue of $13.47 billion, down 1.38% from the prior-year quarter.

PRU's full-year Zacks Consensus Estimates are calling for earnings of $12.20 per share and revenue of $52.51 billion. These results would represent year-over-year changes of +28.96% and -14.88%, respectively.

Investors should also note any recent changes to analyst estimates for Prudential. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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 2.94% higher. Prudential is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that Prudential has a Forward P/E ratio of 7.86 right now. This valuation marks a discount compared to its industry's average Forward P/E of 9.37.

Also, we should mention that PRU has a PEG ratio of 0.62. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Insurance - Multi line was holding an average PEG ratio of 1.14 at yesterday's closing price.

The Insurance - Multi line industry is part of the Finance sector. This group has a Zacks Industry Rank of 48, putting it in the top 20% 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.

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