In the latest trading session, Prudential (PRU – Free Report) closed at $103.50, marking a +0.65% move from the previous day. This change outpaced the S&P 500’s 0.25% gain on the day. Elsewhere, the Dow gained 0.08%, while the tech-heavy Nasdaq added 7.26%.
Coming into today, shares of the financial services company had gained 2.95% in the past month. In that same time, the Finance sector gained 7.22%, while the S&P 500 gained 5.73%.
Investors will be hoping for strength from Prudential as it approaches its next earnings release, which is expected to be February 7, 2023. The company is expected to report EPS of $2.57, down 19.18% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $12.78 billion, down 6.99% from the year-ago period.
Investors should also note any recent changes to analyst estimates for Prudential. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.45% higher. Prudential is holding a Zacks Rank of #2 (Buy) right now.
Digging into valuation, Prudential currently has a Forward P/E ratio of 8.67. Its industry sports an average Forward P/E of 9.5, so we one might conclude that Prudential is trading at a discount comparatively.
The Insurance – Multi line industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 19, which puts it in the top 8% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow PRU in the coming trading sessions, be sure to utilize Zacks.com.
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