Should I buy Prudential Financial stock in 2025?

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At HelloSafe, our expert has been monitoring the performance of Prudential Financial for over three years. Every month, hundreds of thousands of users in the United States rely on us to interpret market trends and discover the best investment opportunities. Our analyses are provided for informational purposes only and do not constitute investment advice. In line with our ethical charter, we have never been, and will never be, compensated by Prudential Financial.

What is Prudential Financial?

How much is Prudential Financial stock?

The price of Prudential Financial stock is falling this week. As of now, PRU is trading at $101.73, reflecting a 0.95% drop over the past 24 hours and a 1.14% decline for the week. The company holds a market capitalization of $36.06 billion, with an average daily volume of 1.96 million shares over the past three months.

Prudential's P/E ratio stands at 13.61, the dividend yield is a strong 5.31%, and the stock’s beta is 1.09, indicating moderate volatility compared to the overall market. While the recent price trend has been negative, PRU’s substantial dividend yield may still attract investors searching for reliable income amid market fluctuations.

Our full analysis on Prudential Financial stock

After a thorough analysis of Prudential Financial’s quarterly results, share price history, and using advanced multi-factor analytical models, we have identified the critical drivers influencing Prudential’s current investment narrative. By integrating financial metrics, technical signals, sector trends, and peer comparisons, we present a comprehensive view of the company’s standing and outlook. Why could Prudential Financial stock once again become a strategic entry in the financial sector for 2025?

Recent Performance and Market Context

Over the past year, Prudential Financial (NYSE: PRU) has exhibited significant share price volatility. As of May 2, 2025, it is trading at $101.73—well below its 52-week high of $130.55, but slightly above its $90.38 low. In the last six months, the stock declined over 16%, and it is down 14.17% year-to-date. Despite this pullback, several developments draw renewed investor interest:

• Q1 2025 earnings showcased robust underlying strength: adjusted operating income reached $1.188 billion ($3.29/share), up from $1.115 billion ($3.05/share) last year.
• Assets under management (AUM) increased to $1.522 trillion, representing a 1.7% year-over-year growth and underlining Prudential’s leadership in asset management.
• The dividend yield remains an attractive 5.31%, providing steady income during share price weakness—outperforming both sector peers and the broader market average.

The wider U.S. financial sector has started stabilizing after a period of rising interest rates and economic adjustments. Loan and insurance demand are solid, and capital markets are recovering. As monetary policy normalizes and sentiment lifts, diversified companies like Prudential are positioned to capitalize on these shifts.

Technical Analysis

On the technical side, Prudential’s chart suggests a complex but potentially positive scenario, potentially hinting at a short-term turning point:

• Relative Strength Index (RSI) sits at 48.14, indicating neutral conditions and limited immediate downside risk.
• MACD stands at -1.28 and short-term EMAs (20/50/100/200-day) all lie below the current price, reflecting recent sell pressure. Still, proximity to major support at $101.53 suggests potential stabilization.
• Technical support clusters above $101, with resistance around $105.16 and a pivotal level at $103.60, creating a defined trading range. Holding above support with confirmed volume could prompt a bullish reversal.
• Despite bearish signals in the immediate term, with many indicators in “Sell,” the stock is nearing levels historically associated with positive reversals and value accumulation.

Short- and medium-term momentum may favor opportunistic entries at correction lows, with potential for upside acceleration if technicals confirm a rebound.

Fundamental Analysis

Prudential’s underlying business remains central to the investment case, especially for those seeking growth and stable income:

• Q1 2025 revenue stood at $13.41 billion, with adjusted operating income growth indicating ongoing profitability, even amid economic challenges.
• Book value per share grew to $83.59, and adjusted book value remains healthy at $96.37—reflecting prudent capital management and a strong downside cushion.
• Valuation remains appealing with a P/E of 13.61—lower than many sector peers and the S&P 500—while the 5.31% dividend yield makes it attractive for income-focused investors.
• Diversification across insurance, retirement, and asset management protects from sector-specific shocks and supports consistent cash flows.
• PGIM (investment management division) assets rose 3% Y/Y to $1.385 trillion, highlighting Prudential’s continued global expansion and capability.

Although some business segments exhibited short-term softness, the company’s long-term earnings potential and strategic focus are undiminished—supported by rigorous risk management and dedication to shareholder value.

Volume and Liquidity

Prudential’s average daily trading volume averages 1.96 million shares (over three months), providing healthy liquidity and ongoing investor engagement:

• High and sustained volume during uncertainty demonstrates enduring interest from both institutional and retail investors, bolstering price stability and dynamic valuation.
• The stock’s float is ample for institutional activity, yet not so large as to hinder upside potential should major catalysts come into play.

This liquidity environment supports flexible trading strategies, enhancing both short-term momentum plays and long-term accumulation.

Catalysts and Positive Outlook

Multiple potential catalysts and structural strengths underpin a constructive medium- and long-term outlook for Prudential Financial:

• Strategic focus and execution: CEO Andy Sullivan is driving tighter execution while balancing growth investment and capital returns.
• Capital return: In Q1 2025 alone, $736 million was returned to shareholders—$486 million in dividends and $250 million in buybacks—reflecting a focus on shareholder value.
• Core business strength: Retirement and group insurance, particularly U.S. operations, delivered robust performance (adjusted operating income up 15.7% Y/Y).
• ESG and responsible investing: Growing focus on sustainable mandates is opening new avenues for AUM growth and improving reputation.
• Global diversification: Exposure to high-growth international markets, especially in Asia and Latin America, creates additional resilience and opportunity.
• Robust balance sheet: Parent company liquid assets increased to $4.9 billion, positioning PRU to manage macro shocks and seize global opportunities.
• Favorable macro trends: If rates fall or stabilize, asset-driven businesses could see increased earnings, while demographic shifts support sustained growth in insurance and retirement.

These catalysts could shift sentiment from caution to optimism, providing a launchpad for a bullish phase as fundamental strengths reassert themselves.

Investment Strategies

Prudential Financial presents multiple strategic entry points suitable for varying investment horizons:

Short-Term

• A major support cluster at $101.53 and recent volume stabilization offer tactical entry potential, particularly for momentum traders targeting a move to resistance at $105.16 and the $113–$115 range.
• Technical mean reversion trades may benefit from a rapid rebound, particularly as oversold indicators get confirmation of stabilization.

Medium-Term

• Interpreting dips as part of a longer consolidation channel may be strategic; as upcoming catalysts manifest (e.g., Q2 earnings, continued buybacks, macro tailwinds), PRU could rally toward the analyst average target of $113.43 (an ~11.5% upside).
• With a strong dividend yield as a buffer, the stock fits well in “buy-and-hold plus income” approaches.

Long-Term

• For patient, income-focused investors, Prudential’s diversified cash flows, increasing book value, and shareholder return policies establish a foundation for long-term wealth accrual.
• Structural sector growth (aging populations, higher retirement preparedness, expanding insurance needs) should drive capital appreciation, especially as management delivers value through global expansion and innovation.

Overall, PRU’s present trading conditions and underlying business fundamentals indicate an attractive risk-reward profile—particularly when buying near clear technical support levels and in advance of key milestones.

Is it the Right Time to Buy Prudential Financial?

In summary, Prudential Financial stands out as a compelling value opportunity. Its robust and diversified business model, strong capital position, and a notable 5.31% dividend yield, alongside current technical corrections, make it attractive for value and income seekers.

Should market sentiment shift or technical signals confirm a reversal, PRU may begin a new bullish run—potentially achieving or exceeding analyst price targets. The company’s consistent capital returns, global expansion, and consistent book value growth further strengthen the investment thesis. Near-term caution and conservative analyst outlooks could actually create the stage for positive surprises as markets reevaluate PRU’s resilience and strategic agility.

For those with a disciplined, medium- to long-term approach, Prudential Financial is a strong candidate in the financial sector, blending quality, defensiveness, and upside opportunity at an attractive entry point. This mix of factors justifies close monitoring as the company may offer rewarding returns to investors seeking both income and growth in 2025.

How to buy Prudential Financial stock in United States?

Buying Prudential Financial (PRU) stock online is straightforward and secure when using a regulated U.S. broker. Today’s digital platforms make it easy for retail investors to access the NYSE and purchase shares directly from their devices in just minutes. Investors typically choose between two main methods: buying real shares outright (spot buying) or speculating via Contracts for Difference (CFDs). Each approach offers unique advantages and considerations, and the best choice depends on your investment goals and risk tolerance. Below, we’ll detail both methods—spot buying and CFD trading—before guiding you to our detailed broker comparison further down the page.

Spot Buying

Spot buying means purchasing actual Prudential Financial shares on the New York Stock Exchange. When you buy shares with cash, you become a part-owner of the company and are entitled to dividends and potential appreciation. U.S. brokers usually charge a fixed commission per trade, often around $5, though some popular platforms offer zero-commission trades.

Important Information

Example: The current Prudential Financial share price is $101.73. With a $1,000 investment and a brokerage fee of approximately $5, you can buy about 9 shares ($1,000 - $5 = $995; $995 ÷ $101.73 ≈ 9 shares).
✔️ Gain scenario: If the share price rises by 10%, your holdings increase to a value of $1,100.
Result: $100 gross gain, or +10% return on your investment (excluding dividends and taxes).

Trading via CFD

CFDs (Contracts for Difference) let you speculate on Prudential Financial’s price movements without owning the actual shares. CFD trading allows for leverage, meaning you can control a larger position with a smaller amount of capital. Brokers usually charge a spread (the difference between buy and sell price), and if you keep the position overnight, a small financing fee applies.

Important Information

Example: You open a CFD position with $1,000 and use 5x leverage, giving you $5,000 market exposure to Prudential Financial.
✔️ Gain scenario: If the stock price rises by 8%, your CFD position gains 8% × 5 = 40%.
Result: $400 gain on your initial $1,000 deposit (before accounting for fees or overnight costs).

Final Advice

Before investing in Prudential Financial stock, it’s essential to compare different brokers’ fees, trading conditions, and available features. The right choice depends on your objectives—whether you prefer owning real shares and earning dividends, or utilizing leverage for short-term strategies with CFDs. Take the time to review our detailed broker comparison further down for the solution that best meets your needs and profile.

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On the broker's website

Our 7 tips for buying Prudential Financial stock

The latest news about Prudential Financial

Prudential Financial reported strong adjusted operating income growth in Q1 2025, driven by robust U.S. business performance. According to the company’s official statement on April 30, 2025, adjusted operating income rose to $1.188 billion ($3.29 per share), up from $1.115 billion ($3.05 per share) in Q1 2024, with the U.S. business segment showing a particularly solid increase in adjusted operating income to $931 million versus $805 million the previous year. This positive result underscores Prudential’s effective execution in its core U.S. insurance and retirement markets, which remain highly relevant for American investors and policyholders.

Prudential Financial maintains a strong capital position and liquidity, enhancing financial stability and resilience. As of March 31, 2025, Prudential’s parent company liquidity stood at $4.9 billion, an increase from $4.2 billion in Q1 2024, reinforcing the group’s capacity to weather macroeconomic volatility or rapidly capitalize on strategic opportunities. This robust financial foundation is crucial within the U.S. regulatory context and continues to support both ongoing operations and the firm’s ability to return value to shareholders in the form of dividends and buybacks.

The company returned substantial capital to shareholders in Q1 2025, highlighting continued commitment to shareholder value. Prudential distributed $736 million in capital to shareholders in the first quarter of 2025, comprising $486 million in dividends and $250 million in share repurchases. The quarterly dividend of $1.35 per share corresponds to a generous annual yield of 5.31%, which remains notably higher than many U.S. industry peers. This consistent approach to returning capital is a constructive signal for investors seeking reliable income streams in the current high-rate environment.

Prudential’s asset management arm, PGIM, delivered positive net inflows and growth in assets under management, reinforcing its leadership in the U.S. market. PGIM reported net inflows of $4.3 billion in Q1 2025, driving a year-over-year increase in assets to $1.385 trillion. This growth reflects the strength of Prudential’s investment management franchise, a key pillar for U.S. institutional and individual investors who rely on the company for retirement and wealth management solutions. The firm’s ability to attract new assets, even in a volatile market, also suggests confidence from the domestic investor base.

Analyst consensus maintains a ‘Hold’ rating but sees potential upside, reflecting cautious optimism for the stock’s U.S. performance. Based on input from 20 leading financial analysts, the consensus rating remains “Hold,” but with an average 12-month price target of $113.43, representing an 11.5% potential upside from current levels. Coupled with the solid business fundamentals and attractive dividend policy, this outlook indicates that many experts still see room for recovery and resilience for U.S. investors, despite near-term technical weakness.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.