Trade-Ideas: Prudential Financial (PRU) Is Today's Momo Momentum Stock
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.Trade-Ideas LLC identified Prudential Financial (PRU) as a momo momentum candidate. In addition to specific proprietary factors, Trade-Ideas identified Prudential Financial as such a stock due to the following factors:
- PRU has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $172.8 million.
- PRU has a PE ratio of 56.1.
- PRU is currently in the upper 30% of its 1-year range.
- PRU is in the upper 25% of its 20-day range.
- PRU is in the upper 35% of its 5-day range.
- PRU is currently trading above yesterday's high.
- PRU has experienced a gap between today's open and yesterday's close of 0.4%.
'Momo Momentum' stocks are valuable stocks to watch for a variety of reasons including historical back testing and price action. Market technicians refer to such stocks as being in a mark-up phase before a possible distribution period and price decline. Technical analysts and traders frequently find that the factors referenced above tend to create a temporary burst of strong wind in a stock's sail. Nevertheless, all successful traders must excel at maximizing gains while keeping losses to an absolute minimum. For that reason, the holding period on momo momentum stocks must always be a primary consideration, and this part of the puzzle is ultimately at the discretion of each individual's risk tolerance and portfolio risk management skills.EXCLUSIVE OFFER: Get the inside scoop on opportunities in PRU with the Ticky from Trade-Ideas. See the FREE profile for PRU NOW at Trade-IdeasMore details on PRU: Prudential Financial, Inc., through its subsidiaries, provides a range of insurance, investment management, and other financial products and services to both individual and institutional customers in the United States and internationally. The stock currently has a dividend yield of 2%. PRU has a PE ratio of 56.1. Currently there are 12 analysts that rate Prudential Financial a buy, no analysts rate it a sell, and 6 rate it a hold.The average volume for Prudential Financial has been 2.9 million shares per day over the past 30 days. Prudential Financial has a market cap of $36.4 billion and is part of the financial sector and insurance industry. The stock has a beta of 1.71 and a short float of 1.2% with 2.61 days to cover. Shares are up 46.6% year to date as of the close of trading on Friday.STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.TheStreetRatings.com Analysis:TheStreet Quant Ratings rates Prudential Financial as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, increase in net income, reasonable valuation levels and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows low profit margins.Highlights from the ratings report include:
- Since the same quarter one year prior, revenues slightly increased by 5.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Compared to where it was trading one year ago, PRU is up 61.39% to its most recent closing price of 78.52. Looking ahead, although the push and pull of a bull or bear market could certainly alter the outcome, our view is that this stock's positive fundamentals give it good potential for further appreciation.
- The net income increased by 24.8% when compared to the same quarter one year prior, going from -$939.00 million to -$706.00 million.
- The debt-to-equity ratio is somewhat low, currently at 0.91, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels.
- You can view the full Prudential Financial Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV