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Here's Why You Should Retain Prudential Financial (PRU) Stock
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Prudential Financial, Inc. (PRU - Free Report) remains 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 fallen 9.3% against the industry’s rise of 0.9%.
Image Source: Zacks Investment Research
Return on Equity
PRU’s return on equity of 16% expanded 583 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 $11.71 and $13.22, indicating a year-over-year increase of 23.7% and 12.8%, respectively.
Estimate Revision
The Zacks Consensus Estimate for 2024 has moved 0.2% north, in the past 30 days, reflecting analysts’ optimism on the stock.
Style Score
Prudential Financial has a VGM Score of A. VGM Score helps identify stocks with the most attractive value, best growth and the most promising momentum.
Business Tailwinds
Prudential Financial’s International businesses are expected to gain from higher emerging markets earnings, a favorable impact from annual assumption update 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 partnerships that enable it to grow in emerging markets. PRU 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.
Prudential Financial has a strong international presence that gives it more organic growth opportunities than its peers. Expanding its international business is vital for long-term growth.
PRU boasts a sturdy balance sheet strength that includes highly liquid assets of $4.3 billion at the end of the third 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 multi-line 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 2.6%. In February 2023, the board also authorized a 4% dividend increase beginning in the first quarter, which represents the 15th consecutive annual dividend increase. As of Sep 30, 2023, 8.3 million shares were repurchased under the shares repurchase authorization for $750 million.
The insurer has an impressive Growth Score of B. This style score helps analyze the growth prospects of a company.
Stocks to Consider
Some better-ranked stocks from the multi-line insurance industry are Assurant, Inc. (AIZ - Free Report) , CNO Financial Group, Inc. (CNO - Free Report) and Enact Holdings, Inc. (ACT - Free Report) . While Assurant sports a Zacks Rank #1 (Strong Buy), CNO Financial and Enact Holdings carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Assurant’s earnings surpassed estimates in each of the last four quarters, the average earnings surprise being 42.38%. In the past year, the insurer has gained 32.4%.
The Zacks Consensus Estimate for AIZ’s 2023 and 2024 earnings implies 30.8% and 3.6% year-over-year growth, respectively.
The Zacks Consensus Estimate for CNO Financial’s 2023 and 2024 earnings implies 18.4% and 8.8% year-over-year growth, respectively. In the past year, the insurer has gained 14.6%.
The Zacks Consensus Estimate for CNO’s 2023 and 2024 revenues implies a year-over-year increase of 4.2% and 1.6%, respectively.
Enact Holdings’ earnings surpassed estimates in three of the last four quarters and missed in one, the average earnings surprise being 21.82%. In the past year, the insurer has gained 14.2%.
The Zacks Consensus Estimate for ACT’s 2023 and 2024 revenues implies 7.2% and 7.9% year-over-year growth, respectively.
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Here's Why You Should Retain Prudential Financial (PRU) Stock
Prudential Financial, Inc. (PRU - Free Report) remains 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 fallen 9.3% against the industry’s rise of 0.9%.
Image Source: Zacks Investment Research
Return on Equity
PRU’s return on equity of 16% expanded 583 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 $11.71 and $13.22, indicating a year-over-year increase of 23.7% and 12.8%, respectively.
Estimate Revision
The Zacks Consensus Estimate for 2024 has moved 0.2% north, in the past 30 days, reflecting analysts’ optimism on the stock.
Style Score
Prudential Financial has a VGM Score of A. VGM Score helps identify stocks with the most attractive value, best growth and the most promising momentum.
Business Tailwinds
Prudential Financial’s International businesses are expected to gain from higher emerging markets earnings, a favorable impact from annual assumption update 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 partnerships that enable it to grow in emerging markets. PRU 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.
Prudential Financial has a strong international presence that gives it more organic growth opportunities than its peers. Expanding its international business is vital for long-term growth.
PRU boasts a sturdy balance sheet strength that includes highly liquid assets of $4.3 billion at the end of the third 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 multi-line 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 2.6%. In February 2023, the board also authorized a 4% dividend increase beginning in the first quarter, which represents the 15th consecutive annual dividend increase. As of Sep 30, 2023, 8.3 million shares were repurchased under the shares repurchase authorization for $750 million.
The insurer has an impressive Growth Score of B. This style score helps analyze the growth prospects of a company.
Stocks to Consider
Some better-ranked stocks from the multi-line insurance industry are Assurant, Inc. (AIZ - Free Report) , CNO Financial Group, Inc. (CNO - Free Report) and Enact Holdings, Inc. (ACT - Free Report) . While Assurant sports a Zacks Rank #1 (Strong Buy), CNO Financial and Enact Holdings carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Assurant’s earnings surpassed estimates in each of the last four quarters, the average earnings surprise being 42.38%. In the past year, the insurer has gained 32.4%.
The Zacks Consensus Estimate for AIZ’s 2023 and 2024 earnings implies 30.8% and 3.6% year-over-year growth, respectively.
The Zacks Consensus Estimate for CNO Financial’s 2023 and 2024 earnings implies 18.4% and 8.8% year-over-year growth, respectively. In the past year, the insurer has gained 14.6%.
The Zacks Consensus Estimate for CNO’s 2023 and 2024 revenues implies a year-over-year increase of 4.2% and 1.6%, respectively.
Enact Holdings’ earnings surpassed estimates in three of the last four quarters and missed in one, the average earnings surprise being 21.82%. In the past year, the insurer has gained 14.2%.
The Zacks Consensus Estimate for ACT’s 2023 and 2024 revenues implies 7.2% and 7.9% year-over-year growth, respectively.