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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 $116.42, moving +0.67% from the previous trading session. This move outpaced the S&P 500's daily loss of 1.42%. At the same time, the Dow lost 0.49%, and the tech-heavy Nasdaq lost 0.47%.

Coming into today, shares of the financial services company had gained 8.15% in the past month. In that same time, the Finance sector gained 5.07%, while the S&P 500 gained 0.39%.

Prudential will be looking to display strength as it nears its next earnings release, which is expected to be February 3, 2022. In that report, analysts expect Prudential to post earnings of $2.36 per share. This would mark a year-over-year decline of 19.45%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales 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. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 0.54% lower. Prudential currently has a Zacks Rank of #3 (Hold).

In terms of valuation, Prudential is currently trading at a Forward P/E ratio of 9.24. This represents a discount compared to its industry's average Forward P/E of 10.44.

It is also worth noting that PRU currently has a PEG ratio of 0.97. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Insurance - Multi line stocks are, on average, holding a PEG ratio of 1.09 based on yesterday's closing prices.

The Insurance - Multi line industry is part of the Finance sector. This group has a Zacks Industry Rank of 169, putting it in the bottom 34% 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.

To follow PRU in the coming trading sessions, be sure to utilize Zacks.com.


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