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Prudential (PRU) Gains As Market Dips: What You Should Know

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Prudential (PRU - Free Report) closed the most recent trading day at $114.79, moving +1.39% from the previous trading session. This change outpaced the S&P 500's 0.41% loss on the day. At the same time, the Dow lost 0.01%, and the tech-heavy Nasdaq gained 0.13%.

Heading into today, shares of the financial services company had gained 6.28% over the past month, outpacing the Finance sector's gain of 4.72% and the S&P 500's gain of 2.36% 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 February 3, 2022. The company is expected to report EPS of $2.36, down 19.45% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $13.48 billion, down 10.57% from the year-ago period.

Any recent changes to analyst estimates for Prudential should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.24% lower. Prudential is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Prudential has a Forward P/E ratio of 9.02 right now. This valuation marks a discount compared to its industry's average Forward P/E of 9.82.

Also, we should mention that PRU has a PEG ratio of 0.95. 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. PRU's industry had an average PEG ratio of 1.06 as of yesterday's close.

The Insurance - Multi line industry is part of the Finance sector. This group has a Zacks Industry Rank of 214, putting it in the bottom 17% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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