We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
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.
Should Value Investors Buy Prudential Financial (PRU) Stock?
Read MoreHide Full Article
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company to watch right now is Prudential Financial (PRU - Free Report) . PRU is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 7.14, which compares to its industry's average of 8.80. Over the past 52 weeks, PRU's Forward P/E has been as high as 8.91 and as low as 6.59, with a median of 7.64.
Investors should also recognize that PRU has a P/B ratio of 1.18. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. PRU's current P/B looks attractive when compared to its industry's average P/B of 2.70. Over the past year, PRU's P/B has been as high as 1.55 and as low as 1.11, with a median of 1.32.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. PRU has a P/S ratio of 0.69. This compares to its industry's average P/S of 1.05.
Value investors will likely look at more than just these metrics, but the above data helps show that Prudential Financial is likely undervalued currently. And when considering the strength of its earnings outlook, PRU sticks out as one of the market's strongest value stocks.
View the Zacks #1 Rank List
Image: Bigstock
Should Value Investors Buy Prudential Financial (PRU) Stock?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company to watch right now is Prudential Financial (PRU - Free Report) . PRU is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 7.14, which compares to its industry's average of 8.80. Over the past 52 weeks, PRU's Forward P/E has been as high as 8.91 and as low as 6.59, with a median of 7.64.
Investors should also recognize that PRU has a P/B ratio of 1.18. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. PRU's current P/B looks attractive when compared to its industry's average P/B of 2.70. Over the past year, PRU's P/B has been as high as 1.55 and as low as 1.11, with a median of 1.32.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. PRU has a P/S ratio of 0.69. This compares to its industry's average P/S of 1.05.
Value investors will likely look at more than just these metrics, but the above data helps show that Prudential Financial is likely undervalued currently. And when considering the strength of its earnings outlook, PRU sticks out as one of the market's strongest value stocks.