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With a market cap of around $40 billion, Prudential Financial, Inc. (PRU) is a leading global financial services company offering a wide range of products, including life insurance, annuities, retirement solutions, mutual funds, and investment management. Operating through key segments like PGIM, Retirement Strategies, Group Insurance, Individual Life, and International Businesses, the company serves both individual and institutional clients worldwide.
The financial services company's shares have underperformed the broader market over the past 52 weeks. PRU has risen 2.5% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 22.3%. Moreover, shares of Prudential Financial are down 7.2% on a YTD basis, compared to SPX’s 3.5% gain.
In addition, the Newark, New Jersey-based company has also lagged behind the Financial Select Sector SPDR Fund’s (XLF) 29.7% return over the past 52 weeks and a 6% YTD gain.
Shares of Prudential Financial fell 3.3% following its Q4 earnings release on Feb. 4 as a strong performance in its PGIM investment management business couldn't offset weakness in U.S. operations. Adjusted operating income of $2.96 per share missed the consensus estimate despite rising 16.5% year-over-year. Total revenue of $13 billion also fell short of the consensus estimate. Additionally, the U.S. Businesses segment reported an adjusted operating income of $860 million, down 10.7% year-over-year and significantly below the estimate, reflecting higher expenses and unfavorable underwriting results.
For the current fiscal year, ending in December 2025, analysts expect PRU’s EPS to grow 13.6% year-over-year to $14.34. However, the company’s earnings surprise history is mixed. It beat the consensus estimates in one of the last four quarters while missing on three other occasions.
Among the 18 analysts covering the stock, the consensus rating is a “Hold.” That’s based on two “Strong Buy” ratings, 14 “Holds,” and two “Strong Sells.”
On Feb. 19, Wells Fargo analyst Elyse Greenspan maintained a “Hold” rating on Prudential Financial and set a price target of $118.
As of writing, PRU is trading below the mean price target of $126.19. The Street-high price target of $140 implies a potential upside of 27.1% from the current price levels.
