Is Prudential Financial Stock a Good Investment?

Prudential Financial Investment Advice

  PRU
To provide specific investment advice or recommendations on Prudential Financial stock, we recommend investors consider the following general factors when evaluating Prudential Financial. This will help you to make an informed decision on whether to include Prudential Financial in one of your diversified portfolios:
  • 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 Buy
Macroaxis provides advice on Prudential Financial to complement and cross-verify current analyst consensus on Prudential Financial. Our recommendation engine determines the firm's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon. To make sure Prudential Financial is not overpriced, please check all Prudential Financial fundamentals, including its book value per share, and the relationship between the net income and number of employees . Given that Prudential Financial has a price to earning of 134.69 X, we recommend you to check out Prudential Financial market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your recent risk tolerance and investing horizon.

Market Performance

OKDetails

Volatility

Very steadyDetails

Hype Condition

StaleDetails

Current Valuation

Fairly ValuedDetails

Odds Of Distress

LowDetails

Economic Sensitivity

Barely shadows the marketDetails

Investor Sentiment

AlarmedDetails

Analyst Consensus

HoldDetails

Financial Leverage

Not RatedDetails

Reporting Quality (M-Score)

UnavailableDetails

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 1.42. 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 0.43. The entity recorded earning per share (EPS) of 6.74. The firm last dividend was issued on the 16th of February 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
On 14th of March 2024 Prudential Financial paid $ 1.3 per share dividend to its current shareholders
Latest headline from investing.com: Prudential Financial earnings missed by 0.03, revenue fell short of estimates

Prudential Financial Quarterly Cash And Short Term Investments

340.75 Billion

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
2002-09-300.490.540.0510 
2002-05-07
2002-03-310.470.580.1123 
2003-11-04
2003-09-300.560.70.1425 
2010-05-05
2010-03-311.311.460.1511 
2004-11-02
2004-09-300.770.920.1519 
2011-08-03
2011-06-301.551.710.1610 
2006-02-08
2005-12-311.221.06-0.1613 
2005-05-04
2005-03-311.021.180.1615 

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.2024-03-31
2.6 M
Charles Schwab Investment Management Inc2023-12-31
2.3 M
Ubs Asset Mgmt Americas Inc2023-12-31
2.3 M
Bank Of America Corp2023-12-31
1.7 M
Nuveen Asset Management, Llc2023-12-31
1.6 M
Jpmorgan Chase & Co2023-12-31
1.4 M
Fmr Inc2023-12-31
1.4 M
Deutsche Bank Ag2023-12-31
1.4 M
Barclays Plc2023-12-31
1.3 M
Vanguard Group Inc2023-12-31
42.3 M
Blackrock Inc2023-12-31
32.5 M
Note, although Prudential Financial's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Prudential Financial's market capitalization trends

The company currently falls under 'Large-Cap' category with a total capitalization of 40.23 B. Market capitalization usually refers to the total value of a company's stock within the entire market. To calculate Prudential Financial's market, we take the total number of its shares issued and multiply it by Prudential Financial's current market price. To manage market risk and economic uncertainty, many investors today build portfolios that are diversified across equities with different market capitalizations. However, as a general rule, conservative investors tend to hold large-cap stocks, and those looking for more risk prefer small-cap and mid-cap equities.

Market Cap

25.91 Billion

Prudential Financial's profitablity analysis

Prudential Financial's profitability indicators refer to fundamental financial ratios that showcase Prudential Financial's ability to generate income relative to its revenue or operating costs. If, let's say, Prudential Financial is currently losing money, the management's focus should be on how to reverse that trend. However, when revenue exceeds expenses, Prudential Financial's executives or investors may be in less hurry to break that information down - which is where profitability analysis comes into play. Gaining a greater understanding of Prudential Financial's profitability requires more research than a typical breakdown of Prudential Financial's financial statements. By doing a profitability analysis, companies can identify areas needing attention, and investors can make a profitable trade.
Last ReportedProjected for Next Year
Return On Tangible Assets 0  0 
Return On Capital Employed(0.0002)(0.0002)
Return On Assets 0  0 
Return On Equity 0.09  0.07 
The company has Net Profit Margin of 0.05 %, which implies that it may need a different competitive strategy as even a very small decline in it revenue may erase profits and result in a net loss. This is way below average. In the same way, it shows Net Operating Margin of 0.24 %, which entails that for every 100 dollars of revenue, it generated $0.24 of operating income.
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.
The data published in Prudential Financial's official financial statements usually reflect Prudential Financial's business processes, product offerings, services, and other fundamental events. But there are other numbers, ratios, or fundamental indicators derived from these statements that are easier to understand and visualize within the underlying realities that drive quantitative information of Prudential Financial. For example, before you start analyzing numbers published by Prudential accountants, it's critical to develop an understanding of what Prudential Financial's liquidity, profitability, and earnings quality are in the context of the Insurance space in which it operates.
Please note, the presentation of Prudential Financial's financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Prudential Financial's management is honest, while the outside auditors are strict and uncompromising. Whatever the case, 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. Please utilize our Beneish M Score to check 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 -0.0002 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 118.8 M 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 ReportedProjected for Next Year
Book Value Per Share 76.53  63.67 
Net Current Asset Value 0.00  0.00 
Tangible Asset Value 0.00  0.00 
Tangible Book Value Per Share 76.15  61.98 
Enterprise Value Over EBITDA(337.53)(320.65)
Price Book Value Ratio 1.36  1.17 
Enterprise Value Multiple(337.53)(320.65)
Price Fair Value 1.36  1.17 
Enterprise Value35.5 B31.8 B
The analysis of Prudential Financial's management efficiency is an essential part of evaluating and assessing the financial and operational performance of the entity. It is also vital to analyze Prudential Financial's future growth prospects and the overall market conditions to determine the value and potential of its stock. The analysis involves studying a range of financial metrics such as revenue, earnings, profit margins, cash flow, debt, market share, and external factors such as economic trends, industry outlook, competition, and government regulations. The goal of Prudential Stock analysis is to determine whether it is undervalued, fairly valued, or overvalued and to make informed investment decisions.
Dividend Yield
0.0465
Forward Dividend Yield
0.0465
Forward Dividend Rate
5.2
Beta
1.348

Basic technical analysis of Prudential Stock

As of the 1st of May, Prudential Financial holds the Coefficient Of Variation of 1466.52, risk adjusted performance of 0.0486, and Semi Deviation of 1.09. 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. Put it differently, you can use this information to find out if the company will indeed mirror its model of past market data, or the prices will eventually revert. We were able to interpolate data for nineteen technical drivers for Prudential Financial, which can be compared to its competitors. Please check Prudential Financial jensen alpha and semi variance to decide if Prudential Financial is priced some-what accurately, providing market reflects its current price of 110.48 per share. Given that Prudential Financial has jensen alpha of 0.0303, we recommend you to check out Prudential Financial's recent market performance to make sure the company can sustain itself at a future point.

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.

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.

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.

Prudential Financial Corporate Filings

8K
30th of April 2024
Report filed with the SEC to announce major events that shareholders should know about
ViewVerify
28th of March 2024
Other Reports
ViewVerify
F3
22nd of March 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
F4
18th of March 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
Prudential Financial time-series forecasting models is one of many Prudential Financial's stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary Prudential Financial's historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.

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 Maximum Pain Price across 2024-05-17 Option Contracts

Prudential Financial's options can also be used to analyze investors' bias and current market sentiment in the context of behavioral finance. For example, Max pain usually refers to a trading concept that asserts that market manipulation can cause the market price of Prudential Financial close to the expiration of its current option contract to expire worthlessly. According to most research, about 35% of options are not executed, with roughly 50% traded out before expiration. So, Max pain occurs when market makers reach a net favorable position across all options at a strike price where option holders stand to lose the most money. By contrast, option sellers may reap the most after selling more options than buying, causing them to expire worthlessly. Please continue to view the detailed analysis of Prudential Financial's options.

Be your own money manager

Our tools can tell you how much better you can do entering a position in Prudential Financial without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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Prudential Financial Corporate Directors

Prudential Financial corporate directors refer to members of a Prudential Financial board of directors. The board of directors generally takes responsibility for the Prudential Financial's affairs and long-term direction of the entity. A corporate director does not make decisions for the corporation on his own. As a member of the board of directors, she or he must function as a part of a group that makes decisions on behalf of the business only by the board of directors' meetings. To pass a resolution, a majority of Prudential Financial's board members must vote for the resolution. The Prudential Financial board of directors' duties also include the election, removal, and supervision of officers, including the adoption, amendment, and repeal of bylaws.
George PazIndependent DirectorProfile
Michael TodmanIndependent DirectorProfile
Thomas BaltimoreLead Independent DirectorProfile
Gilbert CasellasIndependent DirectorProfile

How to buy Prudential Stock?

To provide specific investment advice or recommendations on Prudential Financial stock, we recommend investors consider the following general factors when evaluating Prudential Financial. This will help you to make an informed decision on whether to include Prudential Financial in one of your diversified portfolios:
  • 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.

Already Invested in Prudential Financial?

The danger of trading Prudential Financial is mainly related to its market volatility and Company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of Prudential Financial is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than Prudential Financial. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile Prudential Financial is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.
When determining whether Prudential Financial is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Prudential Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Prudential Financial Stock. Highlighted below are key reports to facilitate an investment decision about Prudential Financial Stock:
Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Prudential Financial. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in metropolitan statistical area.
For more information on how to buy Prudential Stock please use our How to Invest in Prudential Financial guide.
You can also try the Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.

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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.
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Is Prudential Financial's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Prudential Financial. If investors know Prudential will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Prudential Financial listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.527
Dividend Share
5
Earnings Share
6.74
Revenue Per Share
148.498
Quarterly Revenue Growth
0.561
The market value of Prudential Financial is measured differently than its book value, which is the value of Prudential that is recorded on the company's balance sheet. Investors also form their own opinion of Prudential Financial's value that differs from its market value or its book value, called intrinsic value, which is Prudential Financial's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Prudential Financial's market value can be influenced by many factors that don't directly affect Prudential Financial's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Prudential Financial's value and its price, as these two are different measures arrived at by various means. Investors typically determine if Prudential Financial is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Prudential Financial's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.