Prudential(US:PRU) ZACKS·2025-12-30 18:31Core Insights - Prudential Financial Inc. (PRU) shares are trading at a discount compared to the Zacks Multi-line Insurance industry, with a price-to-earnings multiple of 7.62, lower than the industry average of 9.23X, the Finance sector's 17.51X, and the Zacks S&P 500 Composite's 23.44X. The company has a Value Score of A [1] - The market capitalization of Prudential Financial is $39.88 billion, with an average trading volume of 1.63 million shares over the last three months [1] Valuation and Performance - PRU shares closed at $113.33 on Dec. 29, trading above the 50-day and 200-day simple moving averages of $107.88 and $105.65, indicating solid upward momentum [3] - Shares of Prudential Financial have gained 5.5% over the last six months, outperforming the industry's growth of 4.5% [8] Growth Projections - The Zacks Consensus Estimate for Prudential Financial's 2025 earnings per share indicates a year-over-year increase of 14.8%, with estimates for 2026 earnings per share and revenues rising by 2.7% and 0.7%, respectively, from the 2025 estimates [4] - Each of the eight analysts covering PRU has raised earnings estimates for 2025, with the Zacks Consensus Estimate for 2025 and 2026 earnings moving up by 4.2% and 0.4%, respectively, in the past 60 days [10] Strategic Initiatives - Prudential Financial is experiencing strong demand for retirement products, particularly for baby boomers, with projections indicating that nearly 25% of the U.S. population will be 65 years or older by 2050. The company aims to leverage its distribution network and product portfolio to gain a competitive edge [13] - The company is focused on long-term growth through strategic investments, acquisitions, and partnerships in emerging markets, particularly in Japan, Brazil, and Malaysia, which offer significant opportunities despite annuity pressures [7][15] Dividend and Shareholder Returns - Prudential Financial has increased its dividend for the past 16 years, balancing investments for business growth with returning capital to shareholders [16] Analyst Sentiment and Market Position - The average price target from 15 analysts for PRU is $118.33 per share, indicating a potential upside of 3.8% from the last closing price [11] - The company has a VGM Score of B, reflecting attractive value, growth, and momentum compared to peers, and currently holds a Zacks Rank 3 (Hold) [19]