Prudential Financial Inc Stock Buy Recommendation Reiterated (PRU)

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

NEW YORK ( TheStreet) -- Prudential Financial (NYSE: PRU) has been reiterated by TheStreet Ratings as a buy with a ratings score of B .

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Highlights from the ratings report include:
  • The revenue fell significantly faster than the industry average of 21.6%. Since the same quarter one year prior, revenues fell by 12.0%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • PRUDENTIAL FINANCIAL INC has exprienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, PRUDENTIAL FINANCIAL INC increased its bottom line by earning $6.94 versus $5.69 in the prior year. For the next year, the market is expecting a contraction of 9.2% in earnings ($6.30 versus $6.94).
  • In its most recent trading session, PRU has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Looking ahead, although the push and pull of the overall market trend could certainly make a critical difference, we do not see any strong reason stemming from the company's fundamentals that would cause a continuation of last year's decline. In fact, the stock is now selling for less than others in its industry in relation to its current earnings.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Insurance industry. The net income has significantly decreased by 140.3% when compared to the same quarter one year ago, falling from $1,534.00 million to -$618.00 million.

Prudential Financial, Inc., through its subsidiaries, provides various financial products and services, including life insurance, annuities, retirement-related services, mutual funds, and investment management services in the United States, Asia, Europe, and Latin America. Prudential Financial has a market cap of $25.7 billion and is part of the financial sector and insurance industry. The company has a P/E ratio of 7.8, below the S&P 500 P/E ratio of 17.7. Shares are up 10.5% year to date as of the close of trading on Thursday.

You can view the full Prudential Financial Ratings Report or get investment ideas from our investment research center.

--Written by a member of TheStreet Ratings Staff.

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