Prudential Financial, Inc.
) is set to report third-quarter 2013 results today after the
market closes. Last quarter, it posted a 16.2% positive surprise.
Let's see how things are shaping up, prior to this
Growth Factors This Past Quarter
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 the company earn a place among
the top five largest individual life insurance companies in the
U.S. in terms of new recurring premium sales.
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
Our proven model does not conclusively show that Prudential is
likely to beat earnings this quarter. That is because a stock
needs to have both a positive
and a Zacks Rank of #1, 2 or 3 for this to happen. That is not
the case with Prudential as you will see below.
Zacks ESP 0.0%
: That is because both the Most Accurate estimate and the Zacks
Consensus Estimate stand at $2.10. The difference is 0.0%.
: Prudential's Zacks Rank #2 (Buy) increases the predictive power
of ESP. This when combined with a 0.0% ESP makes surprise
prediction difficult. We caution against stocks with Zacks Ranks
#4 and 5 (Sell-rated stocks) going into the earnings
announcement, especially when the company is seeing negative
Other Stocks to Consider
Here are some other companies you may want to consider as our
model shows these have the right combination of elements to post
an earnings beat this quarter.
Western Asset Mortgage Capital Corporation
), earnings ESP of +12.4% and a Zacks Rank #3 (Hold).
Spirit Realty Capital, Inc.
), earnings ESP of +137.5% and a Zacks Rank #3 (Hold).
HARTFORD FIN SV (HIG): Free Stock Analysis
PRUDENTIAL FINL (PRU): Free Stock Analysis
SPIRIT REALTY (SRC): Free Stock Analysis
WESTERN AST MTG (WMC): Free Stock Analysis
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