Des Moines, Iowa-based Principal Financial Group, Inc. (PFG), is a leading global financial services provider that offers a wide range of financial products and services to individuals, corporations, and institutional clients. With a market cap of $19.7 billion, the company offers retirement solutions, life and health insurance, wellness programs, and investment and banking products.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and PFG perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the asset management industry. PFG's strengths include its diversified portfolio, scale, and brand equity. Its interconnected business units drive revenue and strengthen each other. The company's scale enables tech and talent investments, while its brand attracts and retains customers. PFG’s digital platforms and data analytics also personalize experiences, streamline operations, and provide market insights, creating a competitive edge.
Despite its notable strength, PFG shares touched their 52-week high of $90.63 in the last trading session. Over the past three months, PFG stock has surged 12.7%, outperforming the Nasdaq Composite’s ($NASX) 8.1% gains during the same time frame.
In the longer term, shares of PFG rose 17.6% on a six-month basis and climbed 11.8% over the past 52 weeks, underperforming NASX’s six-month gains of 20% and solid 20.2% returns over the last year.
To confirm the bullish trend, PFG has been trading above its 50-day and 200-day moving averages since late August, with slight fluctuations.
On Oct. 27, PFG reported its Q3 results, and its shares closed up more than 3% in the following trading session. Its adjusted EPS of $2.10 did not meet Wall Street expectations of $2.18. The company’s adjusted revenue was $3.9 billion, missing Wall Street forecasts of $4.1 billion.
PFG’s rival, Corebridge Financial, Inc. (CRBG), has lagged behind the stock, with a 5.5% dip on a six-month basis and 3.5% returns over the past 52 weeks.
Wall Street analysts are cautious on PFG’s prospects. The stock has a consensus “Hold” rating from the 15 analysts covering it. While PFG currently trades above its mean price target of $88.85, the Street-high price target of $103 suggests a 14.2% upside potential.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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