/Prudential%20Financial%20Inc_%20HQ%20building-by%20JHVEPhoto%20via%20iStock.jpg)
Headquartered in Newark, New Jersey, Prudential Financial, Inc. (PRU) is a significant player in financial services, offering individuals and institutions insurance, investment management, and retirement solutions. With a market cap of $45.5 billion, Prudential leverages its extensive expertise and diversified portfolio to help clients build financial security, manage risk, and achieve long-term financial goals, serving millions of customers worldwide.
Shares of Prudential Financial have climbed 34.4% over the past 52 weeks, exceeding the broader S&P 500 Index ($SPX), which rallied 31.3% over the past year. However, in 2024, PRU’s stock rose 24.1%, compared to SPX’s 25.5% rise on a YTD basis.
Narrowing the focus, PRU also lagged behind the SPDR S&P Insurance ETF (KIE). The exchange-traded fund has gained 36.4% over the past year.
Prudential Financial’s shares dipped 3.3% following the release of its Q3 earnings on Oct. 30. The company reported robust total revenues of $19.48 billion, surpassing expectations. Despite this strong top-line performance, adjusted EPS decreased by 3.9% year over year to $3.48, marginally exceeding the consensus estimate of $3.47. This decline highlights ongoing profitability challenges, even amid improved revenue performance.
For the current fiscal year, ending in December, analysts expect PRU’s EPS to grow 14.7% to $13.33 on a diluted basis. However, the company’s earnings surprise history is disappointing. It missed the consensus estimate in three of the last four quarters while beating the forecast on one other occasion.
Among the 18 analysts covering PRU stock, the consensus is a “Hold.” That’s based on three “Strong Buy” ratings, 14 “Holds,” and one “Strong Sells.”
The configuration is more bullish than three months ago, with two analysts suggesting a “Strong Buy.”
On Nov. 21, Morgan Stanley (MS) analyst Bob Huang maintained a “Hold” rating on Prudential Financial, with a price target of $140, implying a potential upside of 8.8% from current levels.
The mean price target of $130.07 represents a 1.1% premium to PRU’s current price levels. The Street-high price target of $149 suggests an upside potential of 15.8%.
