HomeMost PopularInvestingWhy Holding Onto Prudential Financial (PRU) Stock Could Be a Smart Move

Why Holding Onto Prudential Financial (PRU) Stock Could Be a Smart Move

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In the world of finance, itโ€™s always important to stay ahead of the game and make smart investment choices. One stock thatโ€™s worth considering is Prudential Financial, Inc. (PRU). With a strong financial position, favorable underwriting, improved spread income, and higher emerging markets earnings, PRU is well-positioned for growth.

The Numbers Speak for Themselves

Despite a 3.8% decline in PRU stock over the past year, itโ€™s important to consider the bigger picture. Prudential Financial has a solid track record, as evidenced by its return on equity of 15.7%, which expanded 650 basis points year over year. This demonstrates the companyโ€™s efficiency in managing shareholdersโ€™ funds.

Moreover, optimistic growth projections are on the horizon for PRU. The Zacks Consensus Estimate for Prudential Financialโ€™s 2023 and 2024 earnings per share indicate a year-over-year increase of 24.5% and 12.2%, respectively. In addition, analysts have revised their estimates upwards for 2024, reflecting their optimism about the stockโ€™s future performance.

Business Tailwinds

Prudential Financialโ€™s International businesses are expected to benefit from higher emerging markets earnings, annual assumption updates, and other refinements. The company is committed to providing high-quality service, expanding distribution and product offerings, and utilizing a differentiated multi-channel distribution model. These strategies, along with strategic acquisitions and partnerships, enable Prudential Financial to grow in emerging markets.

Investing in the Future

Prudential Financial continues to make strategic investments in the long-term sustainable growth of its business. The company aims to build scale and complement its businesses through programmatic acquisitions and partnerships in emerging markets.

With a sturdy balance sheet strength, including highly liquid assets of $4.5 billion and an AA financial strength rating, PRU is well-positioned to navigate the financial landscape. The company also rewards its shareholders with a dividend yield of 5.2%, which compares favorably with the industry average of 2.8%. Furthermore, PRU has authorized a share repurchase program, demonstrating its commitment to returning capital to shareholders.

Consider Other Promising Stocks

If youโ€™re looking to diversify your portfolio, the multi-line insurance industry offers other compelling investment opportunities. Consider stocks like MGIC Investment Corporation (MTG), Old Republic International Corporation (ORI), and Everest Group, Ltd. (EG). These companies have shown strong performance and positive growth projections, making them potential candidates for investment.

MGIC Investment, for example, has consistently surpassed earnings estimates and has gained 34% year to date. Old Republic International has also exceeded earnings estimates and has gained 10.9% year to date, while Everest Group has had three out of the last four quarters with earnings surpassing estimates and has gained 13.2% year to date.

Infrastructure Stock Boom: A Golden Opportunity

Looking beyond the multi-line insurance industry, the U.S. infrastructure sector is poised for substantial growth. The impending push to rebuild the nationโ€™s infrastructure presents a once-in-a-lifetime investment opportunity. Trillions of dollars will be spent on construction, repair, and transformation projects, and fortunes will be made.

At Zacks, weโ€™ve identified five special companies that stand to benefit the most from this infrastructure boom. These companies are involved in road construction, bridge repair, building projects, cargo hauling, and energy transformation. Download our free report today to learn more about these opportunities and get ahead of the curve.

Remember, the key to successful investing is being ahead of the game and making informed decisions. Donโ€™t miss out on the potential gains that Prudential Financial and other promising stocks can offer.

Infrastructure Stock Boom to Sweep America

A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. Itโ€™s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.

The only question is โ€œWill you get into the right stocks early when their growth potential is greatest?โ€

Zacks has released a Special Report to help you do just that, and today itโ€™s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.

Download FREE: How To Profit From Trillions On Spending For Infrastructure >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click here to get this free report

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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