On Oct 10th, we upgraded our recommendation on
Prudential Financial Inc.
) to Outperform from Neutral, reflecting our optimism in the
company's growth prospects.
Prudential has a well diversified business profile with reach
in different markets and a broad product portfolio.
Prudential is set to benefit from the aging American
population. The company is witnessing a huge demand for
retirement benefits products as baby boomers enter
Moreover, the acquisition of Individual Life Insurance
The Hartford Financial Services Group Inc.
) at the end of 2012, has helped this Zacks Rank #1 (Strong Buy)
company earn a place among the top five largest individual
life insurance companies in the U.S. in terms of new recurring
The company also has significant overseas business which is
generating strong earnings.
Also, Prudential's Retirement segment is set to greatly
benefit from the company's penetration in the pension risk
Prudential's investment portfolio is also performing better.
Investment related losses have narrowed down and commercial
mortgage backed securities have yielded net unrealized gain as of
Jun 30, 2013.
Prudential has been witnessing rising earnings estimates. Over
the last 60 days, the Zacks Consensus Estimate for 2013 moved up
by 1.2% to $8.72 as 7 out of 17 estimates moved north. The same
for 2014 rose 0.8% to $9.03 as 6 of 17 estimates were raised over
the same time frame. The expected long term earnings growth is
Eastern Insurance Holdings, Inc.
FBL Financial Group Inc.
) under our coverage carrying Zacks Rank #1 (Strong Buy) are
EASTERN INSURNC (EIHI): Free Stock Analysis
FBL FINL GRP-A (FFG): Free Stock Analysis
HARTFORD FIN SV (HIG): Free Stock Analysis
PRUDENTIAL FINL (PRU): Free Stock Analysis
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