Is Prudential Financial Stock a Good Investment?
Prudential Financial Investment Advice | PRU |
- Examine Prudential Financial's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Prudential Financial's leadership team and their track record. Good management can help Prudential Financial navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Life & Health Insurance space and any emerging trends that could impact Prudential Financial's business and its evolving consumer preferences.
- Compare Prudential Financial's performance and market position to its competitors. Analyze how Prudential Financial is positioned in terms of product offerings, innovation, and market share.
- Check if Prudential Financial pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Prudential Financial's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Prudential Financial stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Prudential Financial is a good investment.
Sell | Buy |
Strong Hold
Market Performance | OK | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Responds to the market | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Prudential Financial Stock
Researching Prudential Financial's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 59.0% of the company shares are owned by institutional investors. The company has price-to-book ratio of 1.52. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. Prudential Financial has Price/Earnings To Growth (PEG) ratio of 0.55. The entity recorded earning per share (EPS) of 11.23. The firm last dividend was issued on the 19th of November 2024.
To determine if Prudential Financial is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Prudential Financial's research are outlined below:
| About 59.0% of the company shares are owned by institutional investors | |
| Latest headline from gurufocus.com: PGIM Closed-End Funds Declare Distributions for December 2024, January, and February 2025 |
Prudential Financial Quarterly Cash And Short Term Investments |
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Prudential Financial uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Prudential Financial. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Prudential Financial's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 6th of February 2024 Upcoming Quarterly Report | View | |
| 7th of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 6th of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact Prudential Financial's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Prudential Financial's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2002-11-05 | 2002-09-30 | 0.49 | 0.54 | 0.05 | 10 | ||
2002-05-07 | 2002-03-31 | 0.47 | 0.58 | 0.11 | 23 | ||
2003-11-04 | 2003-09-30 | 0.56 | 0.7 | 0.14 | 25 | ||
2010-05-05 | 2010-03-31 | 1.31 | 1.46 | 0.15 | 11 | ||
2004-11-02 | 2004-09-30 | 0.77 | 0.92 | 0.15 | 19 | ||
2011-08-03 | 2011-06-30 | 1.55 | 1.71 | 0.16 | 10 | ||
2006-02-08 | 2005-12-31 | 1.22 | 1.06 | -0.16 | 13 | ||
2005-05-04 | 2005-03-31 | 1.02 | 1.18 | 0.16 | 15 |
Know Prudential Financial's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Prudential Financial is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Prudential Financial backward and forwards among themselves. Prudential Financial's institutional investor refers to the entity that pools money to purchase Prudential Financial's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Nippon Life Insurance Co. | 2024-09-30 | 2.6 M | Bank Of New York Mellon Corp | 2024-06-30 | 2.5 M | Charles Schwab Investment Management Inc | 2024-09-30 | 2.4 M | Bank Of America Corp | 2024-06-30 | 2 M | Nuveen Asset Management, Llc | 2024-06-30 | 1.7 M | Ameriprise Financial Inc | 2024-06-30 | 1.5 M | Fmr Inc | 2024-09-30 | 1.4 M | Amundi | 2024-06-30 | 1.4 M | Mariner Wealth Advisors Llc | 2024-06-30 | 1.4 M | Vanguard Group Inc | 2024-09-30 | 41.6 M | Blackrock Inc | 2024-06-30 | 31.4 M |
Prudential Financial's market capitalization trends
The company currently falls under 'Large-Cap' category with a total capitalization of 46.06 B.Market Cap |
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Prudential Financial's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Equity | 0.09 | 0.07 |
Determining Prudential Financial's profitability involves analyzing its financial statements and using various financial metrics to determine if Prudential Financial is a good buy. For example, gross profit margin measures Prudential Financial's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Prudential Financial's profitability and make more informed investment decisions.
Please note, the imprecision that can be found in Prudential Financial's accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of Prudential Financial. Check Prudential Financial's Beneish M Score to see the likelihood of Prudential Financial's management manipulating its earnings.
Evaluate Prudential Financial's management efficiency
Return On Tangible Assets is likely to drop to 0 in 2024. Return On Capital Employed is likely to drop to -0.0015 in 2024. At this time, Prudential Financial's Non Current Liabilities Total is comparatively stable compared to the past year. Non Current Liabilities Other is likely to gain to about 783.4 B in 2024, whereas Total Current Liabilities is likely to drop slightly above 23.3 B in 2024. Prudential Financial's management efficiency ratios could be used to measure how well Prudential Financial manages its routine affairs as well as how well it operates its assets and liabilities.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 81.94 | 64.53 | |
| Tangible Book Value Per Share | 76.15 | 62.57 | |
| Enterprise Value Over EBITDA | -1.9 K | -1.8 K | |
| Price Book Value Ratio | 1.36 | 1.17 | |
| Enterprise Value Multiple | -1.9 K | -1.8 K | |
| Price Fair Value | 1.36 | 1.17 | |
| Enterprise Value | 35.5 B | 31.8 B |
The strategic initiatives led by Prudential Financial's management are central to its market success. By analyzing these initiatives, we provide a clear picture of the stock's growth prospects.
Dividend Yield 0.0401 | Forward Dividend Yield 0.0401 | Forward Dividend Rate 5.2 | Beta 1.282 |
Basic technical analysis of Prudential Stock
As of the 30th of November, Prudential Financial holds the Risk Adjusted Performance of 0.0848, coefficient of variation of 956.06, and Semi Deviation of 1.3. Compared to fundamental indicators, the technical analysis model allows you to check existing technical drivers of Prudential Financial, as well as the relationship between them.Prudential Financial's Outstanding Corporate Bonds
Prudential Financial issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Prudential Financial uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Prudential bonds can be classified according to their maturity, which is the date when Prudential Financial has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| US744320BH48 Corp BondUS744320BH48 | View | |
| US744320BF81 Corp BondUS744320BF81 | View | |
| PRU 6 01 SEP 52 Corp BondUS744320BK76 | View | |
| PRU 5125 01 MAR 52 Corp BondUS744320BJ04 | View | |
| PRUDENTIAL FINL INC Corp BondUS744320BA94 | View | |
| US744320AV41 Corp BondUS744320AV41 | View | |
| PRUDENTIAL FINL INC Corp BondUS744320AY89 | View | |
| US744320AW24 Corp BondUS744320AW24 | View |
Understand Prudential Financial's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Prudential Financial's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.0848 | |||
| Market Risk Adjusted Performance | 0.1179 | |||
| Mean Deviation | 1.03 | |||
| Semi Deviation | 1.3 | |||
| Downside Deviation | 1.43 | |||
| Coefficient Of Variation | 956.06 | |||
| Standard Deviation | 1.49 | |||
| Variance | 2.23 | |||
| Information Ratio | 0.0125 | |||
| Jensen Alpha | (0.03) | |||
| Total Risk Alpha | (0.10) | |||
| Sortino Ratio | 0.013 | |||
| Treynor Ratio | 0.1079 | |||
| Maximum Drawdown | 9.29 | |||
| Value At Risk | (2.05) | |||
| Potential Upside | 1.97 | |||
| Downside Variance | 2.05 | |||
| Semi Variance | 1.69 | |||
| Expected Short fall | (1.09) | |||
| Skewness | 0.5977 | |||
| Kurtosis | 4.22 |
| Risk Adjusted Performance | 0.0848 | |||
| Market Risk Adjusted Performance | 0.1179 | |||
| Mean Deviation | 1.03 | |||
| Semi Deviation | 1.3 | |||
| Downside Deviation | 1.43 | |||
| Coefficient Of Variation | 956.06 | |||
| Standard Deviation | 1.49 | |||
| Variance | 2.23 | |||
| Information Ratio | 0.0125 | |||
| Jensen Alpha | (0.03) | |||
| Total Risk Alpha | (0.10) | |||
| Sortino Ratio | 0.013 | |||
| Treynor Ratio | 0.1079 | |||
| Maximum Drawdown | 9.29 | |||
| Value At Risk | (2.05) | |||
| Potential Upside | 1.97 | |||
| Downside Variance | 2.05 | |||
| Semi Variance | 1.69 | |||
| Expected Short fall | (1.09) | |||
| Skewness | 0.5977 | |||
| Kurtosis | 4.22 |
Consider Prudential Financial's intraday indicators
Prudential Financial intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Prudential Financial stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
| Accumulation Distribution | 6469.83 | |||
| Daily Balance Of Power | (0.10) | |||
| Rate Of Daily Change | 1.0 | |||
| Day Median Price | 129.85 | |||
| Day Typical Price | 129.7 | |||
| Price Action Indicator | (0.50) | |||
| Period Momentum Indicator | (0.11) | |||
| Relative Strength Index | 45.49 |
Prudential Financial Corporate Filings
F4 | 27th of November 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
| 26th of November 2024 Prospectus used primarily for registering securities for public sale. | ViewVerify | |
| 14th of November 2024 Other Reports | ViewVerify | |
F3 | 8th of November 2024 The report used by insiders such as officers, directors, and major shareholders (beneficial owners holding more than 10% of any class of the company's equity securities) to declare their ownership of a company's stock | ViewVerify |
Prudential Stock media impact
Far too much social signal, news, headlines, and media speculation about Prudential Financial that are available to investors today. That information is available publicly through Prudential media outlets and privately through word of mouth or via Prudential internal channels. However, regardless of the origin, that massive amount of Prudential data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Prudential Financial news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Prudential Financial relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Prudential Financial's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Prudential Financial alpha.
Prudential Financial Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Prudential Financial can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Prudential Financial Historical Investor Sentiment
Investor biases related to Prudential Financial's public news can be used to forecast risks associated with an investment in Prudential. The trend in average sentiment can be used to explain how an investor holding Prudential can time the market purely based on public headlines and social activities around Prudential Financial. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Prudential Financial's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Prudential Financial and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Prudential Financial news discussions. The higher the estimate score, the more favorable the investor's outlook on Prudential Financial.
Prudential Financial Corporate Directors
| George Paz | Independent Director | Profile | |
| Michael Todman | Independent Director | Profile | |
| Thomas Baltimore | Lead Independent Director | Profile | |
| Gilbert Casellas | Independent Director | Profile |
Additional Tools for Prudential Stock Analysis
When running Prudential Financial's price analysis, check to measure Prudential Financial's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Prudential Financial is operating at the current time. Most of Prudential Financial's value examination focuses on studying past and present price action to predict the probability of Prudential Financial's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Prudential Financial's price. Additionally, you may evaluate how the addition of Prudential Financial to your portfolios can decrease your overall portfolio volatility.