We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Here's Why You Should Hold Prudential Financial (PRU) Stock
Read MoreHide Full Article
Prudential Financial, Inc. (PRU - Free Report) is well-poised for growth, driven by higher emerging markets earnings, improved spread income, favorable underwriting and a solid financial position.
Zacks Rank & Price Performance
Prudential Financial currently carries a Zacks Rank #3 (Hold). In the past year, PRU stock has lost 3.8% compared with the industry’s decline of 5.8%.
Image Source: Zacks Investment Research
Return on Equity
PRU’s return on equity of 15.7% expanded 650 basis points year over year. This shows the company’s efficiency in managing shareholders’ funds.
Optimistic Growth Projections
The Zacks Consensus Estimate for Prudential Financial’s 2023 and 2024 earnings per share is pegged at $11.78 and $13.23, indicating a year-over-year increase of 24.5% and 12.2%, respectively.
Estimate Revision
The Zacks Consensus Estimate for 2024 has moved 0.3% north in the past seven days, reflecting analysts’ optimism about the stock.
Business Tailwinds
Prudential Financial’s International businesses are expected to gain from higher emerging markets earnings, a favorable impact from annual assumption updates and other refinements. It aims at providing high-quality service and expanding distribution and product offerings via a differentiated multi-channel distribution model as well as other businesses.
The U.S. businesses should continue to gain from a favorable and comparable impact from annual assumption update, higher spread income and more favorable underwriting.
The multi-line insurer continues to invest in acquisitions and partnerships that enable it to grow in emerging markets. PRU acquired a 33% minority interest in Alexander Forbes Group Holdings Limited in South Africa. This investment is consistent with PRU’s strategic focus internationally on higher-growth emerging markets. The deal furthers the partnership’s specific objective to identify and make strategic investments in high-quality financial services companies in selected African geographies.
Prudential Financial undertakes several strategic initiatives, which poise it well for long-term growth. It continues to invest in the long-term sustainable growth of the business through programmatic acquisitions and partnerships in emerging markets to build scale and complement businesses in support of long-term growth.
PRU boasts a sturdy balance sheet strength that includes highly liquid assets of $4.5 billion at the end of the second quarter and a capital position that continues to support an AA financial strength rating. The company continues to balance investments in the growth of businesses with returning capital to shareholders.
The insurer has been increasing its dividend for the past 15 years. Its dividend yield of 5.2% compares favorably with the industry’s figure of 2.8%. In February 2023, the board authorized PRU to repurchase, at management’s discretion, up to $1 billion of its outstanding shares during the period from Jan 1, 2023 through Dec 31, 2023. As of Jun 30, 2023, 5.7 million shares were repurchased under this authorization at a total cost of $500 million.
Stocks to Consider
Some better-ranked stocks from the multi-line insurance industry are MGIC Investment Corporation (MTG - Free Report) , Old Republic International Corporation (ORI - Free Report) and Everest Group, Ltd. (EG - Free Report) . While MGIC Investment sports a Zacks Rank #1 (Strong Buy), Old Republic and Everest Group carry a Zacks Rank #2 (Buy) each at present. You can seethe complete list of today’s Zacks #1 Rank stocks here.
MGIC Investment’s earnings surpassed estimates in each of the last four quarters, the average earnings surprise being 23.59%. Year to date, the insurer has gained 34%.
The Zacks Consensus Estimate for MTG’s 2023 and 2024 earnings has moved 3.5% and 0.4% north, respectively, in the past 60 days.
Old Republic International’s earnings surpassed estimates in each of the last four quarters, the average earnings surprise being 29.85%.
The Zacks Consensus Estimate for ORI’s 2024 earnings has moved 0.7% north in the past seven days. Year to date, the insurer has gained 10.9%.
Everest Group’s earnings surpassed estimates in three of the last four quarters and missed in one, the average earnings surprise being 17.36%.
The Zacks Consensus Estimate for EG’s 2023 and 2024 earnings implies 84.6% and 14.6% year-over-year growth, respectively. Year to date, the insurer has gained 13.2%.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Here's Why You Should Hold Prudential Financial (PRU) Stock
Prudential Financial, Inc. (PRU - Free Report) is well-poised for growth, driven by higher emerging markets earnings, improved spread income, favorable underwriting and a solid financial position.
Zacks Rank & Price Performance
Prudential Financial currently carries a Zacks Rank #3 (Hold). In the past year, PRU stock has lost 3.8% compared with the industry’s decline of 5.8%.
Image Source: Zacks Investment Research
Return on Equity
PRU’s return on equity of 15.7% expanded 650 basis points year over year. This shows the company’s efficiency in managing shareholders’ funds.
Optimistic Growth Projections
The Zacks Consensus Estimate for Prudential Financial’s 2023 and 2024 earnings per share is pegged at $11.78 and $13.23, indicating a year-over-year increase of 24.5% and 12.2%, respectively.
Estimate Revision
The Zacks Consensus Estimate for 2024 has moved 0.3% north in the past seven days, reflecting analysts’ optimism about the stock.
Business Tailwinds
Prudential Financial’s International businesses are expected to gain from higher emerging markets earnings, a favorable impact from annual assumption updates and other refinements. It aims at providing high-quality service and expanding distribution and product offerings via a differentiated multi-channel distribution model as well as other businesses.
The U.S. businesses should continue to gain from a favorable and comparable impact from annual assumption update, higher spread income and more favorable underwriting.
The multi-line insurer continues to invest in acquisitions and partnerships that enable it to grow in emerging markets. PRU acquired a 33% minority interest in Alexander Forbes Group Holdings Limited in South Africa. This investment is consistent with PRU’s strategic focus internationally on higher-growth emerging markets. The deal furthers the partnership’s specific objective to identify and make strategic investments in high-quality financial services companies in selected African geographies.
Prudential Financial undertakes several strategic initiatives, which poise it well for long-term growth. It continues to invest in the long-term sustainable growth of the business through programmatic acquisitions and partnerships in emerging markets to build scale and complement businesses in support of long-term growth.
PRU boasts a sturdy balance sheet strength that includes highly liquid assets of $4.5 billion at the end of the second quarter and a capital position that continues to support an AA financial strength rating. The company continues to balance investments in the growth of businesses with returning capital to shareholders.
The insurer has been increasing its dividend for the past 15 years. Its dividend yield of 5.2% compares favorably with the industry’s figure of 2.8%. In February 2023, the board authorized PRU to repurchase, at management’s discretion, up to $1 billion of its outstanding shares during the period from Jan 1, 2023 through Dec 31, 2023. As of Jun 30, 2023, 5.7 million shares were repurchased under this authorization at a total cost of $500 million.
Stocks to Consider
Some better-ranked stocks from the multi-line insurance industry are MGIC Investment Corporation (MTG - Free Report) , Old Republic International Corporation (ORI - Free Report) and Everest Group, Ltd. (EG - Free Report) . While MGIC Investment sports a Zacks Rank #1 (Strong Buy), Old Republic and Everest Group carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
MGIC Investment’s earnings surpassed estimates in each of the last four quarters, the average earnings surprise being 23.59%. Year to date, the insurer has gained 34%.
The Zacks Consensus Estimate for MTG’s 2023 and 2024 earnings has moved 3.5% and 0.4% north, respectively, in the past 60 days.
Old Republic International’s earnings surpassed estimates in each of the last four quarters, the average earnings surprise being 29.85%.
The Zacks Consensus Estimate for ORI’s 2024 earnings has moved 0.7% north in the past seven days. Year to date, the insurer has gained 10.9%.
Everest Group’s earnings surpassed estimates in three of the last four quarters and missed in one, the average earnings surprise being 17.36%.
The Zacks Consensus Estimate for EG’s 2023 and 2024 earnings implies 84.6% and 14.6% year-over-year growth, respectively. Year to date, the insurer has gained 13.2%.