Market Overview - The U.S. stock market is experiencing mixed trading patterns with a notable rotation out of technology giants and into broader market sectors [1] - The S&P 500 has slipped around 0.2% to 0.3%, marking a modest decline for the fourth time in the last five days [2] - The Nasdaq Composite has traded approximately 1% lower, with the Nasdaq 100 specifically seeing a 1.4% loss [2] - The Dow Jones Industrial Average has risen by as much as 389 points, or 0.8%, indicating a shift away from tech stocks towards firms expected to benefit from improving growth prospects [2] Economic Indicators - The yield on 10-year Treasuries has remained steady at 4.28% [3] - Upcoming economic data includes the ADP Employment Change and ISM Services PMI for January, which are crucial for assessing the labor market and services sector [5] - The week will culminate with the U.S. Employment Report on February 6th, which includes non-farm payrolls and average hourly earnings [6] Company-Specific Highlights - Advanced Micro Devices (AMD) shares dropped by as much as 15.7% despite stronger-than-expected profits, indicating high expectations for AI-related companies [9] - Uber Technologies (UBER) fell 3% to 5% after its quarterly results and profit forecast fell short of expectations [10] - Super Micro Computer (SMCI) rallied by 12% to 14% after delivering stronger-than-expected profits [10] - Eli Lilly (LLY) surged by 9.2% after exceeding profit expectations and providing strong guidance, driven by its obesity drugs [11] - Silicon Laboratories (SLAB) shares soared by 51% following the announcement of its acquisition by Texas Instruments for approximately $7.5 billion [13] - Nvidia (NVDA) shares declined 2.8% due to a broad tech sell-off and uncertainty surrounding its OpenAI investment [14]

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market engagement and confidence [1] - The Zacks Style Scores provide a framework for evaluating stocks based on value, growth, and momentum characteristics [2] Zacks Style Scores Overview - Stocks are rated from A to F based on their value, growth, and momentum, with A indicating the highest potential for outperformance [3] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score [3][4][5][6] Value Score - The Value Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow [3] Growth Score - The Growth Score emphasizes a company's financial health and future growth potential, analyzing projected and historical earnings, sales, and cash flow [4] Momentum Score - The Momentum Score identifies trends in stock prices and earnings estimates, helping investors time their positions effectively [5] VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive indicator for investors who utilize multiple investing strategies [6] Zacks Rank Integration - The Zacks Rank is a proprietary model that uses earnings estimate revisions to guide investors, with 1 (Strong Buy) stocks historically yielding an average annual return of +23.83% since 1988 [7] - The model includes a large number of stocks, making it essential for investors to utilize Style Scores to narrow down their choices [8] Investment Strategy - To maximize returns, investors should target stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [9] - Stocks with lower ranks but high Style Scores may still pose risks due to downward earnings forecasts [10] Company Spotlight: Prudential Financial Inc. (PRU) - Prudential Financial, founded in 1875, offers a range of financial products and services globally [11] - PRU holds a 3 (Hold) Zacks Rank and a VGM Score of B, with a Value Style Score of A, indicating attractive valuation metrics [12] - Recent earnings estimates for fiscal 2026 have been revised upward, with a consensus estimate of $14.92 per share and an average earnings surprise of +7.1% [12] - Given its solid rankings and scores, PRU is recommended for investors' consideration [13]

Core Insights - Prudential Financial, Inc. (PRU) reported fourth-quarter 2025 adjusted operating income of $3.30 per share, missing the Zacks Consensus Estimate by 2%, but reflecting an 11.5% year-over-year increase [1][10] - Total revenues reached $14.52 billion, marking an 11.6% year-over-year increase, driven by higher premiums, net investment income, and asset management fees, surpassing the Zacks Consensus Estimate by 6% [2][10] - Total benefits and expenses amounted to $13 billion, up 11.8% year over year, primarily due to increased insurance and annuity benefits and interest credited to policyholders [3] Operational Update - Prudential Global Investment Management (PGIM) reported adjusted operating income of $249 million, a decrease of 3.8% year over year, attributed to higher expenses and lower revenues from seed and co-investment income, partially offset by increased asset management fees [4] - PGIM's assets under management increased by 7% year over year to $1.466 trillion, driven by equity market and fixed income appreciation [5] - The U.S. Businesses segment delivered an adjusted operating income of $1 billion, up 22% year over year, due to favorable underwriting results and lower expenses, despite a decline in net fee income [5] - International Businesses reported adjusted operating income of $757 million, a 2% year-over-year increase, supported by improved net investment spread results [6] - Corporate and Other segment incurred an adjusted operating loss of $552 million, wider than the previous year's loss, primarily due to increased expenses [7] Capital Deployment - Prudential Financial returned $730 million to shareholders through share repurchases of $250 million and dividends of $480 million in the fourth quarter [8] - The board authorized a 4% increase in the quarterly cash dividend to $1.40 per share, marking the 18th consecutive year of dividend increases [9] Financial Update - As of December 31, 2025, cash and cash equivalents stood at $19.7 billion, a 6.5% increase from the end of 2024, while total debt increased by 0.7% to $20.3 billion [11] - Assets under management and administration rose by 7% year over year to $1.8 trillion, with adjusted book value per common share increasing by 4.5% to $100.17 [11] - Operating return on average equity improved by 110 basis points year over year to 13.3% [12] Full-Year Update - For the full year 2025, adjusted operating income was $14.43 per share, a 14.3% increase from 2023, although it missed the Zacks Consensus Estimate by 0.4% [13] - Total revenues for the year were $57.6 billion, a 15% decrease from 2024, but still beating the Zacks Consensus Estimate by 0.9% [13]

Financial Performance - For the quarter ended December 2025, Prudential reported revenue of $14.52 billion, an increase of 11.6% year-over-year [1] - EPS for the quarter was $3.30, up from $2.96 in the same quarter last year [1] - The reported revenue exceeded the Zacks Consensus Estimate of $13.69 billion by 6.04%, while EPS fell short of the consensus estimate of $3.37 by 2.17% [1] Key Metrics - Total Revenues from U.S. Businesses reached $8.95 billion, surpassing the average estimate of $8.12 billion, reflecting an 18% year-over-year increase [4] - Total Revenues from International Businesses were $4.42 billion, slightly above the estimated $4.35 billion, marking a 3.1% increase from the previous year [4] - Adjusted Operating Income basis for Net investment income was $4.95 billion, exceeding the average estimate of $4.81 billion [4] - Premiums totaled $7.03 billion, significantly higher than the average estimate of $6.08 billion [4] Assets Under Management - Total Assets Under Management and Administration (PGIM) amounted to $1,466.1 billion, slightly below the average estimate of $1,478.36 billion [4] - Affiliated Assets Under Management were reported at $547.1 billion, compared to the average estimate of $551.01 billion [4] - Retail customers' Assets Under Management were $267 billion, in line with the average estimate of $267.77 billion [4] - Institutional customers' Assets Under Management were $652 billion, below the estimated $659.58 billion [4] Stock Performance - Prudential's shares have returned -4.8% over the past month, while the Zacks S&P 500 composite increased by 1.8% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market [3]

Core Viewpoint - Prudential Financial, Inc. (PRU) has underperformed over the past year, with a loss of approximately 8% in value, primarily due to increased reinsurance costs impacting earnings [1] Financial Performance - The majority of the losses occurred in the early part of 2025, indicating a significant impact from rising reinsurance expenses on the company's financial results [1]

Core Viewpoint - Prudential Financial, Inc. (PRU) has underperformed over the past year, with a loss of approximately 8% in value, primarily due to increased reinsurance costs impacting earnings [1] Financial Performance - The majority of the losses occurred in the early part of 2025, indicating a significant impact from rising reinsurance expenses on the company's financial results [1]

Prudential (PRU) came out with quarterly earnings of $3.3 per share, missing the Zacks Consensus Estimate of $3.37 per share. This compares to earnings of $2.96 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -2.17%. A quarter ago, it was expected that this financial services company would post earnings of $3.66 per share when it actually produced earnings of $4.26, delivering a surprise of +16.39%.Over the last four quarters, ...

Financial Performance - Total adjusted operating income before income taxes for Q4 2025 was $1,505 million, a 12% increase from Q4 2024[5] - After-tax adjusted operating income for Q4 2025 was $1,168 million, reflecting a 12% increase year-over-year[5] - Net income attributable to Prudential Financial, Inc. for Q4 2025 was $905 million, a 31% increase compared to Q4 2024[5] - The operating return on average equity based on adjusted operating income for Q4 2025 was 13.3%[5] - The company reported a total of $4,086 million in adjusted operating income year-to-date for 2025, a 10% increase from 2024[5] - Adjusted operating income before income taxes for the year-to-date 2025 was $878 million, showing stability compared to $875 million in the previous year[27] - Adjusted operating income before income taxes for U.S. businesses was $1.051 billion in Q4 2025, a 10% increase from $860 million in Q4 2024[35] - Adjusted operating income before income taxes for Q4 2025 was a loss of $552 million, compared to a loss of $490 million in Q4 2024, indicating a worsening performance[72] Shareholder Returns - Total capital returned to shareholders in 2025 was $2,932 million, a 1% increase from 2024[5] - Dividends paid in Q4 2025 totaled $480 million, consistent with the previous quarter[5] - Diluted earnings per share for Q4 2025 was $2.55, a 33% increase from Q4 2024[9] - Adjusted operating income per diluted share for Q4 2025 was $3.30, a 14% increase year-over-year[9] Revenue and Premiums - Total revenues for Q4 2025 were $14,520 million, a decrease of 15% compared to $16,239 million in Q4 2024[17] - Premiums in Q4 2025 amounted to $7,028 million, down 30% from $8,691 million in Q4 2024[17] - Total revenues for Q4 2025 reached $1,108 million, reflecting a 3% increase from $1,118 million in Q4 2024[27] - Total revenues for Q4 2025 decreased by 24% to $8.946 billion compared to Q4 2024, which reported $7.579 billion[35] - Premiums in Q4 2025 were $4.401 billion, a 40% decline from $7.0 billion in Q4 2024[35] - Total revenues for Q4 2025 decreased by 41% to $4,291 million compared to Q4 2024, with year-to-date revenues at $16,657 million[39] - Premiums for Q4 2025 were $2,831 million, a 52% decline from $4,285 million in Q4 2024, with year-to-date premiums totaling $10,987 million[39] Assets and Liabilities - Total assets under management and administration reached $1,804.2 billion by the end of Q4 2025, slightly down from $1,806.6 billion in Q3 2025[15] - Total assets increased to $773,740 million as of December 31, 2025, up from $735,587 million a year earlier, representing a growth of 5.2%[21] - Total liabilities amounted to $738,159 million, an increase from $705,461 million, marking a growth of 4.6%[23] - Total equity increased to $32,787 million, up from $28,187 million, representing a growth of 16.5%[23] - The company reported a total of $21,530 million in deferred policy acquisition costs, an increase from $20,448 million, reflecting a growth of 5.3%[23] Investment Income - Net investment income for Q4 2025 was $48 million, a significant increase of 1,107% compared to $28 million in Q4 2024[27] - Net investment income increased by 9% year-over-year to $2.982 billion in Q4 2025, up from $2.731 billion in Q4 2024[35] - Total investment income for Q4 2025 was $4,947 million, an increase from $4,601 million in Q4 2024, with realized losses of $556 million compared to $874 million in the previous year[82] - Gross investment income before investment expenses for the full year 2025 was $17,596 million, compared to $16,591 million in 2024, with realized losses of $615 million versus $2,311 million[82] Operating Expenses - Operating expenses for the year-to-date 2025 were $1,973 million, a 7% increase from $1,841 million in 2024[27] - Operating expenses for Q4 2025 were $1,966 million, compared to $1,810 million in Q4 2024, reflecting an increase of 8.6%[100] - Total benefits and expenses for the twelve months ended December 31, 2025, were $51,040 million, compared to $56,118 million in 2024, representing a decrease of 9.1%[96] Market and Risk Management - The change in market value for institutional assets was $4.1 billion in Q4 2025, compared to a decrease of $14.6 billion in Q4 2024[32] - The change in value of market risk benefits, net, was $(22) million in Q4 2025, compared to $(77) million in Q4 2024[100] - The total change in value of market risk benefits, net of related hedging gains, was $(475) million for the twelve months ended December 31, 2025[96] Business Segments - Total revenues for Prudential Financial's U.S. Individual Life segment decreased by 1% year-over-year to $6,130 million in 2025, down from $6,195 million in 2024[60] - Total revenues for Prudential's International Businesses segment increased by 1% year-over-year to $18,148 million in 2025, compared to $17,925 million in 2024[64] - Total revenues for the Group Insurance segment in Q4 2025 were $1,645 million, representing a 5% increase compared to $1,694 million in Q3 2025[54] Policyholder Information - Interest credited to policyholders' account balances increased by 19% to $1,271 million in Q4 2025 from $1,057 million in Q4 2024[17] - The ending balance of policyholders' account balances for the U.S. Individual Life segment increased to $35,018 million in 2025, compared to $33,773 million in 2024[62] - The persistency ratio for Group Disability Insurance was 91.8% in Q4 2025, down from 92.9% in Q3 2025, indicating a slight decline in customer retention[56] Ratings and Financial Strength - Prudential's financial strength ratings from A.M. Best and Fitch reflect strong ratings, with the Prudential Insurance Company of America rated A+ by A.M. Best and AA by Fitch[143] - The company emphasizes the importance of adjusted operating income as a measure to enhance understanding of underlying performance trends, excluding certain volatile items[114]

Core Insights - Prudential Financial, Inc. reported a significant increase in net income for 2025, reaching $3.576 billion or $9.99 per share, compared to $2.727 billion or $7.50 per share in 2024, indicating a strong financial performance [5][6][7] - The company emphasized its commitment to customer trust and announced a voluntary 90-day suspension of new sales in Japan to address employee misconduct issues [4][6] Financial Performance - The total net income for the fourth quarter of 2025 was $905 million or $2.55 per share, a recovery from a net loss of $57 million or $0.17 per share in the same quarter of 2024 [7][5] - After-tax adjusted operating income for 2025 was $5.161 billion or $14.43 per share, up from $4.588 billion or $12.62 per share in 2024 [5][6] - Book value per common share increased to $92.05 from $77.62 year-over-year, while adjusted book value per common share rose to $100.17 from $95.82 [5][6] Business Segments - PGIM, Prudential's global investment management business, reported adjusted operating income of $249 million for Q4 2025, down from $259 million in the previous year, primarily due to higher expenses [9][10] - U.S. Businesses achieved adjusted operating income of $1.051 billion in Q4 2025, an increase from $860 million in Q4 2024, driven by higher net investment spread results and favorable underwriting [11][12] - International Businesses reported adjusted operating income of $757 million for Q4 2025, up from $742 million in the prior year, reflecting improved underwriting results [18][19] Capital Management - Prudential returned nearly $3 billion in capital to shareholders in 2025, with $730 million returned in Q4 alone, including $250 million in share repurchases and $480 million in dividends [3][5] - The company declared a quarterly dividend of $1.40 per common share, marking a 4% increase from the previous year and the 18th consecutive year of dividend increases [5][6] Market Position - Prudential's assets under management reached $1.609 trillion, up from $1.512 trillion year-over-year, indicating strong growth in the asset management sector [5][10] - The company highlighted its strategic focus on retirement markets, benefiting from global secular tailwinds driving growth [3][4]

Group 1 - Prudential Financial, Inc. (NYSE:PRU) is recognized as one of the 7 Best Non-REIT Dividend Stocks to Invest in [1] - The price target for Prudential Financial has been raised to $113 from $111, while maintaining a Hold rating [2][3] - The company operates as a diversified financial services firm, providing insurance, investment, and retirement products globally [2] Group 2 - The CEO of Prudential Financial's Japan life insurance unit will resign following employee misconduct involving approximately 3.1 billion yen (about $19.6 million) [4][5] - A total of 498 customers were affected by the misconduct, which included improper financial activities by employees [5] - The Japan unit has been conducting an internal review since August 2024, expanding the investigation after discovering multiple similar cases [6]