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

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Prudential (PRU - Free Report) closed the most recent trading day at $84.66, moving -0.85% from the previous trading session. This change lagged the S&P 500's 0.37% gain on the day. Elsewhere, the Dow lost 0.01%, while the tech-heavy Nasdaq lost 1.26%.

Heading into today, shares of the financial services company had gained 7.38% over the past month, outpacing the Finance sector's gain of 3.13% and the S&P 500's gain of 4.31% in that time.

Wall Street will be looking for positivity from Prudential as it approaches its next earnings report date. In that report, analysts expect Prudential to post earnings of $3.15 per share. This would mark year-over-year growth of 81.03%. Our most recent consensus estimate is calling for quarterly revenue of $12.69 billion, down 7.89% from the year-ago period.

PRU's full-year Zacks Consensus Estimates are calling for earnings of $11.93 per share and revenue of $53.64 billion. These results would represent year-over-year changes of +26.11% and -13.05%, respectively.

Investors should also note any recent changes to analyst estimates for Prudential. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.46% lower. Prudential is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, Prudential is currently trading at a Forward P/E ratio of 7.16. This represents a discount compared to its industry's average Forward P/E of 8.73.

We can also see that PRU currently has a PEG ratio of 0.73. 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 1.14 as of yesterday's close.

The Insurance - Multi line industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 74, which puts it in the top 30% 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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