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Des Moines, Iowa-based Principal Financial Group, Inc. (PFG), is a leading global financial services provider that offers a wide range of financial products and services to individuals, corporations, and institutional clients. With a market cap of $17.7 billion, the company offers retirement solutions, life and health insurance, wellness programs, and investment and banking products.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and PFG fits right into that category with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the asset management industry. PFG's successful risk management strategies, including hedging activities, have helped mitigate the impact of interest rate and foreign exchange fluctuations. Their comprehensive approach to managing investments and capital structure has bolstered financial stability. PFG's competitive edge is demonstrated by its strong ability to attract and retain clients, resulting in increased premiums and fees.
Despite its notable strength, PFG slipped 18.6% from its 52-week high of $91.98, achieved on Oct. 17. Over the past three months, PFG stock declined 10.5%, underperforming the Dow Jones Industrials Average’s ($DOWI) 2% gains during the same time frame.
In the longer term, shares of PFG dipped 4.8% on a YTD basis and fell 3.7% over the past 52 weeks, underperforming DOWI’s YTD gains of 12.3% and 13.5% returns over the last year.
To confirm the bearish trend, PFG has been trading below its 200-day moving average recently. The stock is trading below its 50-day moving average since early December.
On Oct. 24, PFG shares closed up marginally after reporting its Q3 results. The company’s adjusted EPS of $1.76, missed analyst estimates of $2.01.
In the competitive arena of finance, Prudential plc (PUK) lagged behind the stock, plummeting 30.5% on a YTD basis and 28.9% over the past 52 weeks.
Wall Street analysts are cautious on PFG’s prospects. The stock has a consensus “Hold” rating from the 14 analysts covering it, and the mean price target of $87.23 suggests a potential upside of 16.4% from current price levels.
