Strong On High Volume: Prudential Financial (PRU)
Trade-Ideas LLC identified
(
) as a strong on high relative volume 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 $218.2 million.
- PRU has traded 316,884 shares today.
- PRU is trading at 4.10 times the normal volume for the stock at this time of day.
- PRU is trading at a new high 4.01% above yesterday's close.
'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.
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More details on PRU:
Prudential Financial, Inc. provides insurance, investment management, and other financial products and services to individual and institutional customers in the United States and internationally. The stock currently has a dividend yield of 2.8%. PRU has a PE ratio of 15. Currently there are 11 analysts that rate Prudential Financial a buy, no analysts rate it a sell, and 4 rate it a hold.
The average volume for Prudential Financial has been 2.5 million shares per day over the past 30 days. Prudential Financial has a market cap of $38.1 billion and is part of the financial sector and insurance industry. The stock has a beta of 1.37 and a short float of 1.6% with 2.96 days to cover. Shares are down 6.8% year-to-date as of the close of trading on Thursday.
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Analysis:
rates Prudential Financial as a
. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, attractive valuation levels, notable return on equity and largely solid financial position with reasonable debt levels by most measures. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.
Highlights from the ratings report include:
- PRUDENTIAL FINANCIAL INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, PRUDENTIAL FINANCIAL INC turned its bottom line around by earning $3.08 versus -$1.61 in the prior year. This year, the market expects an improvement in earnings ($10.50 versus $3.08).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Insurance industry. The net income increased by 186.1% when compared to the same quarter one year prior, rising from $512.00 million to $1,465.00 million.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Insurance industry and the overall market on the basis of return on equity, PRUDENTIAL FINANCIAL INC has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
- Regardless of the drop in revenue, the company managed to outperform against the industry average of 17.8%. Since the same quarter one year prior, revenues fell by 10.5%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- You can view the full Prudential Financial Ratings Report.
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