We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
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.
Prudential Financial (PRU) Up 35.1% in a Year: More Room to Run?
Read MoreHide Full Article
Prudential Financial, Inc.’s (PRU - Free Report) shares have gained 35.1% in a year compared with the industry's growth of 24.2%. The Finance sector and the Zacks S&P 500 composite have returned 21.2% and 23%, respectively, in the same time frame. With a market capitalization of $45.43 billion, the average volume of shares traded in the last three months was 1.37 million.
Image Source: Zacks Investment Research
The rally was largely driven by the growing pension risk transfer (PRT) market, higher emerging markets earnings, expanding distribution, product offerings, improved spread income, strategic acquisitions and a solid financial position.
Prudential Financial has a VGM Score of A. The VGM Score helps identify stocks with the most attractive value, best growth and most promising momentum.
Will the Bull Run Continue?
The Zacks Consensus Estimate for Prudential Financial’s 2024 earnings per share indicates a year-over-year increase of 15.2%. The consensus estimate for revenues is pegged at $63 billion, implying a year-over-year improvement of 23.7%.
The consensus estimate for 2025 earnings per share indicates an increase of 8.4% from the corresponding 2024 estimate.
Prudential Financial has an impressive Growth Score of B. This style score helps analyze the growth prospects of a company. The expected long-term earnings growth rate is 9.7%.
PRU’s International businesses are expected to gain from increased spread income, including the benefit of elevated interest rates and more favorable variable investment income, and higher joint venture earnings due to the favorable performance in Chile.
The U.S. businesses should continue to gain from higher spread income due to business growth and more favorable underwriting results.
Prudential Financial has been a leader in the PRT market, helping companies reduce risks related to pension liabilities, such as interest rate risk, earnings volatility and participant longevity. PRU recently announced that it has been selected for a PRT transaction from Verizon Communications Inc. This move bodes well for the insurer’s Retirement Strategies business, which is expected to grow over time.
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.
This Zacks Rank #3 (Hold) multi-line insurer boasts a sturdy balance sheet strength that includes cash and liquid assets of $4.2 billion within the liquidity target range of $3-$5 billion. The company continues to balance investments in the growth of businesses with returning capital to shareholders.
PRU has been increasing its dividend for the past 15 years. In the first quarter of 2024, the board also authorized a 4% dividend increase, which represents the 16th consecutive annual dividend hike. The company’s capital deployment is supported by its sturdy balance sheet strength, which continues to support an AA financial strength rating.
However, Prudential Financial’s net margin has been declining over the last couple of years. The company has been witnessing an increase in expenses due to higher policyholders’ benefits, interest credited to policyholders’ account balances, dividends to policyholders as well as higher general and administrative expenses. The insurer must strive to improve its revenues, or else margins will continue to erode.
Stocks to Consider
Some better-ranked stocks from the multi-line insurance industry are Hamilton Insurance Group, Ltd. (HG - Free Report) , EverQuote, Inc. (EVER - Free Report) and MGIC Investment Corporation (MTG - Free Report) . While Hamilton Insurance sports a Zacks Rank #1 (Strong Buy), MGIC Investment and EverQuote carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Hamilton Insurance’s 2024 and 2025 earnings implies year-over-year growth of 60.6% and 13.2%, respectively. In the past year, shares of HG have gained 16.7%.
The Zacks Consensus Estimate for HG’s 2024 and 2025 revenues implies year-over-year growth of 45% and 11%, respectively.
EverQuote has a solid track record of beating earnings estimates in each of the trailing four quarters, the average being 65.16%. In the past year, shares of EVER have skyrocketed 256.9%.
The Zacks Consensus Estimate for EVER’s 2024 and 2025 earnings implies year-over-year growth of 103% and 270%, respectively.
MGIC Investment has a solid track record of beating earnings estimates in each of the trailing four quarters, the average being 15.45%. In the past year, shares of MTG have jumped 42.8%.
The Zacks Consensus Estimate for MTG’s 2024 and 2025 revenues implies year-over-year growth of 4.6% and 4.8%, respectively.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Prudential Financial (PRU) Up 35.1% in a Year: More Room to Run?
Prudential Financial, Inc.’s (PRU - Free Report) shares have gained 35.1% in a year compared with the industry's growth of 24.2%. The Finance sector and the Zacks S&P 500 composite have returned 21.2% and 23%, respectively, in the same time frame. With a market capitalization of $45.43 billion, the average volume of shares traded in the last three months was 1.37 million.
Image Source: Zacks Investment Research
The rally was largely driven by the growing pension risk transfer (PRT) market, higher emerging markets earnings, expanding distribution, product offerings, improved spread income, strategic acquisitions and a solid financial position.
Prudential Financial has a VGM Score of A. The VGM Score helps identify stocks with the most attractive value, best growth and most promising momentum.
Will the Bull Run Continue?
The Zacks Consensus Estimate for Prudential Financial’s 2024 earnings per share indicates a year-over-year increase of 15.2%. The consensus estimate for revenues is pegged at $63 billion, implying a year-over-year improvement of 23.7%.
The consensus estimate for 2025 earnings per share indicates an increase of 8.4% from the corresponding 2024 estimate.
Prudential Financial has an impressive Growth Score of B. This style score helps analyze the growth prospects of a company. The expected long-term earnings growth rate is 9.7%.
PRU’s International businesses are expected to gain from increased spread income, including the benefit of elevated interest rates and more favorable variable investment income, and higher joint venture earnings due to the favorable performance in Chile.
The U.S. businesses should continue to gain from higher spread income due to business growth and more favorable underwriting results.
Prudential Financial has been a leader in the PRT market, helping companies reduce risks related to pension liabilities, such as interest rate risk, earnings volatility and participant longevity. PRU recently announced that it has been selected for a PRT transaction from Verizon Communications Inc. This move bodes well for the insurer’s Retirement Strategies business, which is expected to grow over time.
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.
This Zacks Rank #3 (Hold) multi-line insurer boasts a sturdy balance sheet strength that includes cash and liquid assets of $4.2 billion within the liquidity target range of $3-$5 billion. The company continues to balance investments in the growth of businesses with returning capital to shareholders.
PRU has been increasing its dividend for the past 15 years. In the first quarter of 2024, the board also authorized a 4% dividend increase, which represents the 16th consecutive annual dividend hike. The company’s capital deployment is supported by its sturdy balance sheet strength, which continues to support an AA financial strength rating.
However, Prudential Financial’s net margin has been declining over the last couple of years. The company has been witnessing an increase in expenses due to higher policyholders’ benefits, interest credited to policyholders’ account balances, dividends to policyholders as well as higher general and administrative expenses. The insurer must strive to improve its revenues, or else margins will continue to erode.
Stocks to Consider
Some better-ranked stocks from the multi-line insurance industry are Hamilton Insurance Group, Ltd. (HG - Free Report) , EverQuote, Inc. (EVER - Free Report) and MGIC Investment Corporation (MTG - Free Report) . While Hamilton Insurance sports a Zacks Rank #1 (Strong Buy), MGIC Investment and EverQuote carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Hamilton Insurance’s 2024 and 2025 earnings implies year-over-year growth of 60.6% and 13.2%, respectively. In the past year, shares of HG have gained 16.7%.
The Zacks Consensus Estimate for HG’s 2024 and 2025 revenues implies year-over-year growth of 45% and 11%, respectively.
EverQuote has a solid track record of beating earnings estimates in each of the trailing four quarters, the average being 65.16%. In the past year, shares of EVER have skyrocketed 256.9%.
The Zacks Consensus Estimate for EVER’s 2024 and 2025 earnings implies year-over-year growth of 103% and 270%, respectively.
MGIC Investment has a solid track record of beating earnings estimates in each of the trailing four quarters, the average being 15.45%. In the past year, shares of MTG have jumped 42.8%.
The Zacks Consensus Estimate for MTG’s 2024 and 2025 revenues implies year-over-year growth of 4.6% and 4.8%, respectively.