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Newark, New Jersey-based Prudential Financial, Inc. (PRU) provides insurance, investment management, and other financial products and services worldwide. With a market cap of $43.6 billion, Prudential operates through PGIM, Retirement Strategies, Group Insurance, Individual Life, and International business segments.
Companies worth $10 billion or more are generally described as "large-cap stocks," Prudential fits this bill perfectly. Given the company operates as one of the largest insurance providers worldwide, its valuation above this mark is not surprising. The company serves over 50 million customers in 50+ countries and employs more than 39,000 people worldwide.
Prudential recently touched its all-time high of $130.55 on Nov. 27 and is currently trading 7.1% below that peak. PRU stock has surged 5.7% over the past three months, slightly outpacing SPDR S&P Insurance ETF’s (KIE) 5.2% gains over the same time frame.
However, when compared on a longer-term basis, Prudential has lagged behind other insurance stocks. PRU has gained 16.9% on a YTD basis and 20.2% over the past 52 weeks, underperforming KIE’s 28.5% gains in 2024 and 28.9% returns over the past year.
To confirm the uptrend trend, PRU has traded above its 200-day moving average since mid-August and above its 50-day moving average since mid-September with some fluctuations.
Despite surpassing Wall Street’s earnings and revenue expectations, Prudential Financial's stock plunged 3.3% in the trading session after the release of its Q3 results on Oct. 30. The significant 133.4% year-over-year increase in total revenues to $19.5 billion was largely driven by a base effect, yet it fell short of the revenue levels reported in Q3 2022. Additionally, Prudential reported a staggering 171.7% year-over-year rise in policy benefits to more than $14 billion, coupled with an 8% surge in general and administrative expenses, totaling $3.3 billion. These rising expenses contributed to a 2.6% decline in adjusted operating income before taxes, down to $1.6 billion, which unsettled investors’ confidence.
Prudential has also underperformed its peer MetLife, Inc.’s (MET) 23.6% gains on a YTD basis and 27.5% returns over the past year.
Among the 18 analysts covering the PRU stock, the consensus rating is a “Hold.” The mean price target of $130.27 represents a 7.4% premium to current price levels.
