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Prudential (PRU) Outpaces Stock Market Gains: What You Should Know
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Prudential (PRU - Free Report) closed at $87 in the latest trading session, marking a +1.65% move from the prior day. This change outpaced the S&P 500's 0.83% gain on the day. Elsewhere, the Dow gained 0.8%, while the tech-heavy Nasdaq added 4.46%.
Heading into today, shares of the financial services company had gained 4.7% over the past month, outpacing the Finance sector's gain of 3.88% and the S&P 500's gain of 4.04% 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 May 2, 2023. In that report, analysts expect Prudential to post earnings of $3.02 per share. This would mark a year-over-year decline of 4.73%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $13.29 billion, down 2.69% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $12.09 per share and revenue of $51.7 billion. These totals would mark changes of +27.8% and -16.2%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Prudential. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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.
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 0.91% lower. Prudential is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Prudential has a Forward P/E ratio of 7.08 right now. Its industry sports an average Forward P/E of 8.72, so we one might conclude that Prudential is trading at a discount comparatively.
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. The Insurance - Multi line was holding an average PEG ratio of 0.95 at yesterday's closing price.
The Insurance - Multi line industry is part of the Finance sector. This group has a Zacks Industry Rank of 115, putting it in the top 46% 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.
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Prudential (PRU) Outpaces Stock Market Gains: What You Should Know
Prudential (PRU - Free Report) closed at $87 in the latest trading session, marking a +1.65% move from the prior day. This change outpaced the S&P 500's 0.83% gain on the day. Elsewhere, the Dow gained 0.8%, while the tech-heavy Nasdaq added 4.46%.
Heading into today, shares of the financial services company had gained 4.7% over the past month, outpacing the Finance sector's gain of 3.88% and the S&P 500's gain of 4.04% 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 May 2, 2023. In that report, analysts expect Prudential to post earnings of $3.02 per share. This would mark a year-over-year decline of 4.73%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $13.29 billion, down 2.69% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $12.09 per share and revenue of $51.7 billion. These totals would mark changes of +27.8% and -16.2%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Prudential. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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.
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 0.91% lower. Prudential is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Prudential has a Forward P/E ratio of 7.08 right now. Its industry sports an average Forward P/E of 8.72, so we one might conclude that Prudential is trading at a discount comparatively.
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. The Insurance - Multi line was holding an average PEG ratio of 0.95 at yesterday's closing price.
The Insurance - Multi line industry is part of the Finance sector. This group has a Zacks Industry Rank of 115, putting it in the top 46% 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.