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Headquartered in Des Moines, Iowa, Principal Financial Group, Inc. (PFG) is a global leader in financial services with a market cap of $18.79 billion. Specializing in retirement solutions, insurance, and asset management, Principal provides a wide range of financial products and services to individuals, businesses, and institutional clients worldwide. With a strong focus on helping customers achieve their financial goals, Principal combines innovative strategies with deep expertise to deliver comprehensive and reliable financial solutions across various markets.
Shares of PFG have significantly underperformed the broader market over the past year. The stock has gained 4.1% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 24.3%. Also, in 2024, PFG is up 2.6% compared to SPX’s 17.2% rise on a YTD basis.
Narrowing the focus, PFG has also underperformed compared to the iShares U.S. Financials ETF (IYF). The exchange-traded fund has gained about 21.7% on a YTD basis.
PFG reported Q2 earnings on Jul. 25. The company reported a profit of $353.10 million, or $1.63 per share, fell short of the Wall Street expectations of $1.87 per share. However, the company's revenue of $4.31 billion surpassed the analysts’ expectations of $3.78 billion. The stock declined 3.4% the following day.
For the current fiscal year, ending in December, analysts expect PFG’s EPS to grow 11.6% year over year to $7.31 on a diluted basis. The company's earnings surprise history is mixed. It missed the consensus estimate in two of the last four quarters while beating the forecast on the other two occasions.
Among the 14 analysts covering PFG stock, the consensus rating is a “Hold.” That’s based on one “Strong Buy” rating, 11 “Holds,” and two “Strong Sells.”
On Aug. 17, Bob Huang from Morgan Stanley (MS) maintained a “Hold” rating on Principal Financial Group, with a price target of $83, implying a potential upside of 2.9% from current levels.
The mean price target is $85.75, representing a premium of 6.3% compared to PFG’s current price levels. The Street-high price target of $99 suggests an upside potential of 22.7%.
On the date of publication, Rashmi Kumari 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.
