Prudential Financial Inc (PRU): Today's Featured Insurance Laggard

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

Prudential Financial ( PRU) pushed the Insurance industry lower today making it today's featured Insurance laggard. The industry as a whole closed the day down 1.0%. By the end of trading, Prudential Financial fell $1.22 (-1.7%) to $70.48 on light volume. Throughout the day, 1,897,763 shares of Prudential Financial exchanged hands as compared to its average daily volume of 3,053,300 shares. The stock ranged in price between $70.11-$71.64 after having opened the day at $71.56 as compared to the previous trading day's close of $71.70. Other companies within the Insurance industry that declined today were: Donegal Group ( DGICB), down 6.3%, Kingsway Financial Services ( KFS), down 5.2%, Citizens ( CIA), down 5.1% and Infinity Property and Casualty Corporation ( IPCC), down 3.2%.
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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 $32.9 billion and is part of the financial sector. The company has a P/E ratio of 50.7, above the S&P 500 P/E ratio of 17.7. Shares are up 34.4% year to date as of the close of trading on Thursday. Currently there are 12 analysts that rate Prudential Financial a buy, no analysts rate it a sell, and 6 rate it a hold.

TheStreet 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.

On the positive front, American Independence Corporation ( AMIC), down 6.3%, First Acceptance Corporation ( FAC), down 5.6%, National Security Group ( NSEC), down 3.2% and AmTrust Financial Services ( AFSI), down 1.8%.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the insurance industry could consider KBW Insurance ETF ( KIE) while those bearish on the insurance industry could consider Proshares Short Financials ( SEF).

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