Prudential Financial Inc

PRU-N

NYSE:PRU

97.10
1.71 (1.79%)
Prudential Financial, Inc. is an American Fortune Global 500 and Fortune 500 company whose subsidiaries provide insurance, investment management, and other financial products and services to both retail ...
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Analysis and Opinions about PRU-N

Signal
Opinion
Expert
PAST TOP PICK
PAST TOP PICK
October 25, 2019
(A Top Pick Nov 08/18, Up 4%) They spun off the asset management business in the UK that was a 3.7B pound deal. Typically, you see what happens with the spin out and sell it if you like it. There is some upside. Their Hong Kong headquarters is growing very strongly. US operations are growing well too. With Brexit and Hong Kong issues resolved, the business could grow even more.
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(A Top Pick Nov 08/18, Up 4%) They spun off the asset management business in the UK that was a 3.7B pound deal. Typically, you see what happens with the spin out and sell it if you like it. There is some upside. Their Hong Kong headquarters is growing very strongly. US operations are growing well too. With Brexit and Hong Kong issues resolved, the business could grow even more.
COMMENT
COMMENT
May 8, 2019

US Lifeco vs Financials PRU-N is at risk to interest rates on their premiums collected as he thinks yields will remain neutral. He is not keen on BAC-N either at this point for the same views of the yield curve. Things can't get any better for each right now -- a no man's land right now. He sees a bit better bid for Lifecos, but mostly from a defensive position. There are more compelling areas than these two spaces.

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US Lifeco vs Financials PRU-N is at risk to interest rates on their premiums collected as he thinks yields will remain neutral. He is not keen on BAC-N either at this point for the same views of the yield curve. Things can't get any better for each right now -- a no man's land right now. He sees a bit better bid for Lifecos, but mostly from a defensive position. There are more compelling areas than these two spaces.

DON'T BUY
DON'T BUY
March 6, 2019
Metlife vs. Prudential vs. US banks Both are high quality and international. Strong. He doesn't love lifecos now, because there's a lot going on in health, such as the prevalance of diabetes. He wants to see higher interest rates which can benefit lifecos. As for banks, he'd stay away. The rates and yield curve have flattened. Met are doing the right thing, like a nice dividend and a big share buybacks. It isn't expensive and doing 10% earnings growth, but there are greener pastures elsewhere.
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Metlife vs. Prudential vs. US banks Both are high quality and international. Strong. He doesn't love lifecos now, because there's a lot going on in health, such as the prevalance of diabetes. He wants to see higher interest rates which can benefit lifecos. As for banks, he'd stay away. The rates and yield curve have flattened. Met are doing the right thing, like a nice dividend and a big share buybacks. It isn't expensive and doing 10% earnings growth, but there are greener pastures elsewhere.
BUY WEAKNESS
BUY WEAKNESS
January 31, 2019
Typically it is around $100 and is around $90 at present so a good a time to buy. Bond yields are low and the asset management business has seen fee compression. People are living longer and so there has been some mispricing on life insurance contracts. It has been a though business for a couple of years. It pays a dividend. It will probably get double digit returns this year. He would buy it down here.
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Typically it is around $100 and is around $90 at present so a good a time to buy. Bond yields are low and the asset management business has seen fee compression. People are living longer and so there has been some mispricing on life insurance contracts. It has been a though business for a couple of years. It pays a dividend. It will probably get double digit returns this year. He would buy it down here.
DON'T BUY
DON'T BUY
December 27, 2018
He would avoid life insurance in general because rising interest rates raise the present value of their liabilities.
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He would avoid life insurance in general because rising interest rates raise the present value of their liabilities.
COMMENT
COMMENT
October 29, 2018

BAC vs. PRUDENTIAL If both benefit from wider rates, the spreads will widen for U.S. banks, which have been
pulling back. BAC has A 10% market share in the U.S. which is as big as the entire Canadian banking system. BAC has lot of exposure to the plain mortgage side where spreads should expand. Be patient and you'll see earnings and dividends. U.S. lifecos should benefit, too, but so will Canadian ones like MFC-T (which is a good entry point now). He prefers American banks over their lifecos.

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BAC vs. PRUDENTIAL If both benefit from wider rates, the spreads will widen for U.S. banks, which have been
pulling back. BAC has A 10% market share in the U.S. which is as big as the entire Canadian banking system. BAC has lot of exposure to the plain mortgage side where spreads should expand. Be patient and you'll see earnings and dividends. U.S. lifecos should benefit, too, but so will Canadian ones like MFC-T (which is a good entry point now). He prefers American banks over their lifecos.

DON'T BUY
DON'T BUY
February 8, 2018

BAC-N vs. PRU-N. He leans more toward the banks. You are taking on yield curve and interest rate risk with the banks, however. BAC-N is his preference.

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BAC-N vs. PRU-N. He leans more toward the banks. You are taking on yield curve and interest rate risk with the banks, however. BAC-N is his preference.

BUY
BUY
October 24, 2017

Prudential Financial (PRU-N) or the banks? He would own both. You need to diversify within your financial sector. The banking sector grows differently than life insurance. Life insurance is a bit more dependent on where interest rates are heading, and he thinks they are going to continue to creep higher. This company has a very strong balance sheet and a tremendous amount of capital in their balance sheet.

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Prudential Financial (PRU-N) or the banks? He would own both. You need to diversify within your financial sector. The banking sector grows differently than life insurance. Life insurance is a bit more dependent on where interest rates are heading, and he thinks they are going to continue to creep higher. This company has a very strong balance sheet and a tremendous amount of capital in their balance sheet.

COMMENT
COMMENT
September 5, 2017

MetLife, Prudential or the American banks? He would give a bit of a nod towards the banks. As a general proposition, there are more ways the banks can boost earnings. The purchase of insurance is very much out of favour. Regarding MetLife versus Prudential, he would give a slight nod to this one as they have been doing some cost cutting which will help their bottom line.

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MetLife, Prudential or the American banks? He would give a bit of a nod towards the banks. As a general proposition, there are more ways the banks can boost earnings. The purchase of insurance is very much out of favour. Regarding MetLife versus Prudential, he would give a slight nod to this one as they have been doing some cost cutting which will help their bottom line.

BUY
BUY
August 4, 2017

This closed at $110.27, and he has a model price of $125.66, a 14% upside. He is positive for the whole US financial sector. This is one you could buy for the long-term. Dividend yield of 2.75%.

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This closed at $110.27, and he has a model price of $125.66, a 14% upside. He is positive for the whole US financial sector. This is one you could buy for the long-term. Dividend yield of 2.75%.

BUY
BUY
July 18, 2017

The lifecos are big beneficiaries of rising rates. There is going to be improving loan growth in US wealth management.

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The lifecos are big beneficiaries of rising rates. There is going to be improving loan growth in US wealth management.

BUY
BUY
May 19, 2017

MetLife (MET-N) or Prudential Life (PRU-N)? When you are building a diversified portfolio, within financials, if you own a bank, only 1 or 2 lifecos is just as good. He can’t really choose between these 2, and in fact would own both of them. Both are going to move in similar directions, and both will benefit from rising interest rates.

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MetLife (MET-N) or Prudential Life (PRU-N)? When you are building a diversified portfolio, within financials, if you own a bank, only 1 or 2 lifecos is just as good. He can’t really choose between these 2, and in fact would own both of them. Both are going to move in similar directions, and both will benefit from rising interest rates.

COMMENT
COMMENT
January 17, 2017

Prudential (PRU-N), Metropolitan Life (MET-N) or a US bank? He likes financials for the long haul. The only group that has not fully recovered from the 2008 downturn. However, there has been a tremendous run up since the election on the hopes for higher interest rates because of stronger growth from some of the Trump policies and less regulations. He likes them both. They are both trading close to BV. However, insurance is becoming more and more of a commodity business, so he thinks he would give a little edge to MetLife for being bigger. Currently he likes the life insurers because the banks have run up so much.

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Prudential (PRU-N), Metropolitan Life (MET-N) or a US bank? He likes financials for the long haul. The only group that has not fully recovered from the 2008 downturn. However, there has been a tremendous run up since the election on the hopes for higher interest rates because of stronger growth from some of the Trump policies and less regulations. He likes them both. They are both trading close to BV. However, insurance is becoming more and more of a commodity business, so he thinks he would give a little edge to MetLife for being bigger. Currently he likes the life insurers because the banks have run up so much.

WEAK BUY
WEAK BUY
November 21, 2016

MET-N vs. PRU-N. They will get a nice tailwind from a steeper rate curve. He prefers MS-N or GS-N to these two.

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MET-N vs. PRU-N. They will get a nice tailwind from a steeper rate curve. He prefers MS-N or GS-N to these two.

COMMENT
COMMENT
May 20, 2016

Currently there has been a ratcheting higher of expectations for a rate increase, which would be positive for financials. People think a higher rate will push the yield curve on the short end higher, which should reflect higher inflation expectations in the out years, lifting the long end of the curve. There is a feeling that everyone is currently dramatically underweight on financials. There is probably some short term life to financials. Doesn’t feel rates are going to go high quickly. He holds a neutral to bearish views on financials.

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Currently there has been a ratcheting higher of expectations for a rate increase, which would be positive for financials. People think a higher rate will push the yield curve on the short end higher, which should reflect higher inflation expectations in the out years, lifting the long end of the curve. There is a feeling that everyone is currently dramatically underweight on financials. There is probably some short term life to financials. Doesn’t feel rates are going to go high quickly. He holds a neutral to bearish views on financials.

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