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Des Moines, Iowa-based Principal Financial Group, Inc. (PFG) provides retirement, asset management, and insurance products and services to businesses, individuals, and institutional clients. It is valued at a market cap of $18.7 billion.
Companies worth $10 billion or more are typically classified as “large-cap stocks,” and PFG fits the label perfectly, with its market cap exceeding this threshold, underscoring its size, influence, and dominance within the asset management industry. The company continues to leverage digital transformation and AI-driven wellness tools to drive earnings growth while optimizing its portfolio through the divestiture of lower-return legacy life and annuity blocks.
This financial company has slipped 10.6% from its 52-week high of $97.88, reached on Feb. 6. Shares of PFG have declined 2.1% over the past three months, underperforming the Dow Jones Industrial Average's ($DOWI) 1.5% drop during the same time frame.
Moreover, in the longer term, PFG has gained 4.3% over the past 52 weeks, lagging behind DOWI’s 12.7% uptick over the same time frame. However, on a YTD basis, shares of PFG are down marginally, outpacing DOWI’s 1.9% fall.
To confirm its recent bearish trend, PFG has been trading below its 50-day moving average since early March. However, it has remained above its 200-day moving average since late October.
On Feb. 9, shares of PFG declined 1.5% following the release of its Q4 results. The company reported adjusted EPS of $2.19, which fell short of the $2.23 expected by analysts. Looking ahead, management anticipates full-year adjusted EPS growth in the range of 9% to 12%.
PFG has outpaced its rival, BlackRock, Inc. (BLK), which rose marginally over the past 52 weeks and dropped 10.4% on a YTD basis.
Given PFG’s recent underperformance, analysts remain cautious about its prospects. The stock has a consensus rating of "Hold” from the 13 analysts covering it, and the mean price target of $94.73 suggests an 8.4% premium to its current price levels.
