Prudential: Insurance Strength Pairs Well With A Near 5% Yield (Rating Upgrade)

Prudential Financial is rated a 'Buy,' viewed as undervalued with supportive industry tailwinds and improving technicals. PRU's Q1 results exceeded expectations: non-GAAP EPS of $3.61 vs. $3.11 consensus, $15.23 billion revenue, and strong PGIM performance. Valuation is compelling—using $14.20 normalized EPS and a 9x P/E, shares should trade near $128, with a 4.7% yield. Key risks include global market weakness and Prudential of Japan’s sales suspension, but balance sheet strength and technical momentum support the bullish thesis. Annuity sales have soared since interest rates rose in 2021 and 2022. With immense wealth held among the 60-and-over cohort, portfolio protection is often the name of the game.