Is Prudential Financial Stock Underperforming the S&P 500?

Prudential Financial, Inc. (PRU), based in Newark, New Jersey, is a global financial services provider specializing in insurance, investment management, and retirement solutions. With a market capitalization of $37.8 billion, the company operates through key segments, including PGIM (investment management), Retirement Strategies, Group Insurance, Individual Life, and International Businesses. 

Companies worth $10 billion or more are generally described as "large-cap stocks," Prudential fits this bill perfectly. Prudential’s diverse offerings and strong market presence make it a leading player in the financial services industry.

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Prudential recently touched its 52-week high of $130.55 on Nov. 27 and is currently trading 18.7% below that peak. PRU stock has dipped 12% over the past three months, compared to the broader S&P 500 Index ($SPX), which declined 7.5% during the same period.

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PRU has declined 8.4% over the past six months and 5.1% over the past 52 weeks. In comparison, PRU has raised marginally over the past six months and 8.2% over the past year.

To confirm the uptrend trend, PRU has traded below its 50-day and 200-day moving average since early February.

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On Feb. 4, Prudential Financial reported Q4 earnings with an 11.4% rise in adjusted operating income before income taxes, driven by strong growth in its global investment management unit, PGIM. Total assets under management increased to $1.5 trillion from $1.45 trillion. Despite a 16.5% year-over-year increase, adjusted operating income of $2.96 per share fell short of expectations. Likewise, total revenue of $13 billion missed consensus estimates, which led the stock to crumble 3% after the announcement.

Prudential has also underperformed its peer MetLife, Inc.’s (MET) 4.9% gains over the past six months and 10.5% returns over the past year.

Among the 18 analysts covering the PRU stock, the consensus rating is a “Hold.” The mean price target of $125.88 represents an 18.7% premium to current price levels.