This story originally appeared on Zacks
In the latest trading session, Prudential (PRU) closed at $112.43, marking a -0.67% move from the previous day. This change was narrower than the S&P 500’s 1.1% loss on the day. Meanwhile, the Dow lost 0.89%, and the Nasdaq, a tech-heavy index, added 0.03%.
Heading into today, shares of the financial services company had gained 5.87% over the past month, outpacing the Finance sector’s gain of 2.59% and the S&P 500’s loss of 1.81% in that time.
Prudential will be looking to display strength as it nears its next earnings release, which is expected to be February 3, 2022. The company is expected to report EPS of $2.36, down 19.45% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $13.48 billion, down 10.57% from the year-ago period.
Any recent changes to analyst estimates for Prudential should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.26% higher within the past month. Prudential currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Prudential currently has a Forward P/E ratio of 8.97. This valuation marks a discount compared to its industry’s average Forward P/E of 9.67.
Investors should also note that PRU has a PEG ratio of 1 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. The Insurance – Multi line was holding an average PEG ratio of 1.15 at yesterday’s closing price.
The Insurance – Multi line industry is part of the Finance sector. This group has a Zacks Industry Rank of 206, putting it in the bottom 20% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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