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-. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, increase in net income and increase in stock price during the past year. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

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Highlights from the ratings report include:
  • PRU's revenue growth trails the industry average of 17.7%. 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.
  • PRUDENTIAL FINANCIAL INC has improved earnings per share by 26.2% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, PRUDENTIAL FINANCIAL INC reported lower earnings of $0.83 versus $6.91 in the prior year. This year, the market expects an improvement in earnings ($7.94 versus $0.83).
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Insurance industry average, but is greater than that of the S&P 500. The net income increased by 27.0% when compared to the same quarter one year prior, rising from -$967.00 million to -$706.00 million.
  • 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. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.

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. Prudential Financial has a market cap of $30.2 billion and is part of the financial sector and insurance industry. The company has a P/E ratio of 47.00, above the S&P 500 P/E ratio of 18.00. Shares are up 24.9% year to date as of the close of trading on Tuesday.

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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