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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 $87, marking a -0.09% move from the previous day. This change lagged the S&P 500's daily gain of 0.09%. Elsewhere, the Dow lost 0.03%, while the tech-heavy Nasdaq lost 2.51%.

Coming into today, shares of the financial services company had gained 8.43% in the past month. In that same time, the Finance sector gained 6.72%, while the S&P 500 gained 6.17%.

Investors will be hoping for strength from Prudential as it approaches its next earnings release, which is expected to be May 2, 2023. In that report, analysts expect Prudential to post earnings of $3.03 per share. This would mark a year-over-year decline of 4.42%. Our most recent consensus estimate is calling for quarterly revenue of $13.47 billion, down 1.39% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $12.19 per share and revenue of $52.54 billion. These totals would mark changes of +28.86% and -14.83%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Prudential. 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.13% lower. Prudential currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Prudential has a Forward P/E ratio of 7.15 right now. For comparison, its industry has an average Forward P/E of 8.82, which means Prudential is trading at a discount to the group.

Also, we should mention that PRU has a PEG ratio of 0.55. 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. PRU's industry had an average PEG ratio of 0.94 as of yesterday's close.

The Insurance - Multi line industry is part of the Finance sector. This group has a Zacks Industry Rank of 64, putting it in the top 26% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

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

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