Why It Is Apt To Hold Prudential Financial (PRU) Stock Now
Zacks Investment Research | Jul 16, 2017 09:39PM ET
Prudential Financial, Inc. (NYSE:PRU) has earned reputation in the Multi line insurance industry in the United States by meeting the expectations and ever-changing needs of its clients over a considerable period of time. Keeping its goodwill intact, the company offers a broad range of insurance, investment management and other financial products and services to its target market, building a solid product and service portfolio over the years.
The Multi line insurer will continue to benefit from its reach and an in-depth expertise in the pension risk transfer (PRT) business. The company is also on track to establish a leadership position in the potentially strong PRT market, suitable to mobilize the insurance company’s skills in the management of group annuity.
The company’s international operations too have positioned it well for long-term growth. It is expected to benefit from the AFP Habitat buyout, completed in the first quarter of 2016. The transaction, expanding its international footprint, is estimated to result in stable growth, steady earnings and an adequate cash flow generation. Therefore, the company remains focused on diversifying its activities to enable it to accelerate overall growth and leave a positive impact on the same in the near term.
The Zacks Rank #3 (Hold) Multi line insurer has successfully generated investors’ value by implementing some shareholder-friendly measures such as, dividend payments and share repurchases, over time. It has been approved of to buy back worth $1.25 billion shares in 2017. The company remains committed toward maintaining a solid capital and liquidity position, thereby protecting itself from market volatility.
However, an unfavorable currency impact and regulatory control remain headwinds. In addition, rising expenses have been raising concerns for the insurer and it does not expect a turnaround in the immediate term.
Shares of Prudential Financial have gained 7.06% year to date, outperforming the Zacks categorized Zacks Investment Research
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