Prudential Financial Inc. [NYSE: PRU] shares went higher by 9.59% from its previous closing of 51.61, now trading at the price of $56.56, also adding 4.95 points. Is PRU stock a buy or should you stay away?
The stock had a rather active trading session with the latest closing, by far recording 2.48 million contracts. Compared to the average trading volume of PRU shares, the company saw a far better performance. Moreover, the stock has a 395.91M float and a 11.76% run over in the last seven days. PRU share price has been hovering between 106.39 and 38.62 lately, and is definitely worthy of attention.
Prudential Financial Inc. [NYSE:PRU]: Analyst Rating and Earnings
Experts stock market traders frequently make a point to check what top Wall Street analysts say regarding a potential buy. Regarding Prudential Financial Inc. [PRU] currently, the latest Wall Street ratings we can see is from the fiscal quarter that’s going to end in 12/30/2019. On average, stock market experts give PRU an Overweight rating. The average 12-month price forecast for this stock is $56.73, with the high estimate being $110.00, the low estimate being $47.00 and the median estimate amounting to $92.50. This is compared to its latest closing price of $51.61.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Prudential Financial Inc. [PRU] is sitting at 3.46. This is compared to 1 month ago, when its average rating was 3.50.
Stay on the lookout for the next publication of this organization’s financial results for the quarter, which will be made public on 05/05/2020.
Fundamental Analysis of Prudential Financial Inc. [PRU]
Now let’s turn to look at profitability: with a current Operating Margin for Prudential Financial Inc. [PRU] sitting at 7.80%, this company’s Net Margin is now 6.40. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.
This company’s Return on Total Capital is 5.88, and its Return on Invested Capital has reached 5.58. Its Return on Equity is 6.70%, and its Return on Assets is 0.50%. These metrics show a mixed bag, which means that this investment’s attractiveness can be quickly increased or decreased in the short term, depending on future updates PRU financial performance.
Turning to investigate this organization’s capital structure, Prudential Financial Inc. [PRU] has generated a Total Debt to Total Equity ratio of 56.64. Similarly, its Total Debt to Total Capital is 36.16, while its Total Debt to Total Assets stands at 4.05. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 31.56, and its Long-Term Debt to Total Capital is 20.15.
What about valuation? This company’s Enterprise Value to EBITDA is 8.50. The Enterprise Value to Sales for this firm is now 0.77, and its Total Debt to Enterprise Value stands at 0.48. Prudential Financial Inc. [PRU] has a Price to Book Ratio of 0.59, a Price to Cash Flow Ratio of 1.96 and P/E Ratio of 5.58. These metrics all suggest that Prudential Financial Inc. is more likely to generate a positive ROI.
Prudential Financial Inc. [PRU] has 413.20M shares outstanding, amounting to a total market cap of 21.33B. Its stock price has been found in the range of 38.62 to 106.39. At its current price, it has moved down by -46.84% from its 52-week high, and it has moved up 46.45% from its 52-week low.
This stock’s Beta value is currently 1.73, which indicates that it is 12.70% more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 45.33. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Prudential Financial Inc. [PRU] a Reliable Buy?
Shares of Prudential Financial Inc. [PRU], on the whole, present investors with both positive and negative signals. Wall Street analysts have mixed reviews when it comes to the 12-month price outlook, and this company’s financials show a combination of strengths and weaknesses. Based on the price performance, this investment is somewhat risky while presenting reasonable potential for ROI.