Newark, New Jersey-based Prudential Financial, Inc. (PRU) is a financial services company that offers a comprehensive array of financial products and services designed to help both individual and institutional customers grow and protect their wealth. It is valued at a market cap of $35.8 billion.
This financial company has considerably lagged the broader market over the past 52 weeks. Shares of PRU have gained 2.2% over this time frame, while the broader S&P 500 Index ($SPX) has soared 27.4%. Moreover, on a YTD basis, the stock is down 7.8%, compared to SPX’s 8.7% rise.
Zooming in further, PRU has also underperformed the State Street Financial Select Sector SPDR Fund (XLF), which surged 2.9% over the past 52 weeks and declined 5.5% on a YTD basis.
On May 5, shares of PRU surged 2.7% after its better-than-expected Q1 earnings release. The company’s revenue increased 13.6% year-over-year to $15.2 billion, topping analyst estimates by 7.3%. Moreover, its adjusted EPS of $3.61 handily exceeded consensus expectations of $3.24. Strong momentum in U.S. retirement and asset management, paired with continued expense discipline, contributed to its upbeat performance.
For the current fiscal year, ending in December, analysts expect PRU’s EPS to decline 5% year over year to $13.71. The company’s earnings surprise history is mixed. It exceeded the consensus estimates in three of the last four quarters, while missing on another occasion.
Among the 19 analysts covering the stock, the consensus rating is a "Hold," which is based on one “Strong Buy,” 13 “Hold,” one "Moderate Sell,” and four “Strong Sell” ratings.
The configuration is more bearish than a month ago, with two analysts suggesting a “Strong Buy” rating and two recommending "Strong Sell.”
On May 13, Keefe Bruyette maintained a “Market Perform” rating on PRU and raised its price target to $106, indicating a 1.8% potential upside from the current levels.
While the company is trading above its mean price target of $101.73, its Street-high price target of $117 implies a 12.4% potential upside.
On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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