Is Principal Financial Stock Underperforming the S&P 500?

Company Overview - Principal Financial Group, Inc. (PFG) is based in Des Moines, Iowa, and offers retirement, asset management, and insurance products and services, with a market cap of $18 billion [1] - The company provides a diverse portfolio including pension plans, annuities, mutual funds, asset management, life insurance, and specialty benefits, which helps clients save, invest, protect, and retire [1][2] Market Position - PFG is classified as a "large-cap stock" due to its market cap exceeding $10 billion, indicating its size and influence in the asset management industry [2] - The company's diverse offerings contribute to stable, recurring revenue and resilience across market cycles [2] Stock Performance - Currently, PFG is trading 12.1% below its 52-week high of $91.98, reached on October 17, 2024, and has gained 6.7% over the past three months, underperforming the S&P 500 Index's 10.3% return [3] - Over the past 52 weeks, PFG shares have fallen 3.5%, significantly lagging behind the S&P 500's 17.1% increase [4] - Year-to-date, PFG shares are up 4.5%, compared to the S&P 500's 12.2% surge [4] Recent Financial Performance - In Q2, PFG reported an adjusted EPS of $2.16, a 32.5% improvement from the previous year, exceeding consensus estimates of $1.98 [5] - The company's Assets Under Management (AUM) grew by 7.7% year-over-year to $752.7 billion, indicating healthy net inflows [5] - PFG's performance has been outpaced by its competitor, Corebridge Financial, Inc. (CRBG), which saw a 17.4% increase over the past 52 weeks [5] Analyst Sentiment - Analysts maintain a cautious outlook on PFG, with a consensus rating of "Hold" from 15 analysts [6] - The mean price target for PFG is $85.92, suggesting a 6.3% premium to its current price levels [6]