Stock Price & Analysis

Based on the provided data, here's a concise analysis of PFG stock:

Technical Analysis

The stock is currently trading at $80.97, down 1.80% in regular trading hours with an additional -0.02% decline in post-market. The RSI of 58.42 indicates neutral momentum, neither overbought nor oversold. The stock is trading slightly above its 20-day moving average of $80.42, suggesting short-term stability.

Recent Developments JPMorgan recently upgraded PFG to Overweight from Neutral with a price target of $92. The upgrade reflects Principal's lower-risk liability profile and improved business outlook. However, Wells Fargo downgraded to Underweight with a $69 target, citing concerns about organic growth pressures.

Analyst Consensus Current analyst ratings show a mixed outlook:

• 3 Strong Buy
• 8 Hold
• 4 Strong Sell Average price target: $86, implying ~6% upside potential from current levels.

Upcoming Catalyst Q4 earnings report scheduled for February 6, 2025. Analysts expect EPS of $1.98, representing an 8.2% increase year-over-year. However, the company has missed estimates in three of the last four quarters.

Conclusion SELL. Despite JPMorgan's recent upgrade, multiple factors suggest caution:

1. Mixed analyst sentiment
2. Recent earnings misses
3. Underperformance compared to broader market indices
4. Technical indicators showing neutral momentum
5. Upcoming earnings risk

Based on the provided data and JPMorgan's recent upgrade of Principal Financial Group (PFG), here's the price prediction for 2025:

PFG stock is expected to reach $86-90 by end of 2025, driven by strong AUM growth and robust margins in group insurance. The stock currently trades at $80.97, suggesting a potential upside of 6-11% from current levels.

The positive outlook is supported by JPMorgan's upgrade to overweight rating due to PFG's low-risk profile and improved business outlook, despite some near-term headwinds from variable investment income in Q4 2024.

The S1 support level for PFG Stock is $80.1 ,The R1 resistant level for PFG Stock is $83.78.

As of the end of day on 2025-02-05, the price of PFG Stock was $79.52.

The target price for PFG Stock according to analyst rating is 86.00, with the highest price target at 98.00 and the lowest at 69.00. Analysts have a Hold rating on PFG Stock overall.

The market cap of PFG is $18.4B.

Based on the provided data, here is a comprehensive analysis of PFG's valuation:

Valuation Analysis PFG currently shows mixed valuation signals. The stock trades at a P/E of 14.92, which is relatively reasonable for the financial services sector. The EV/EBITDA ratio of 10.19 and P/B ratio of 1.75 suggest moderate valuation levels.

Financial Performance Recent quarterly performance shows concerning trends. Q3 2024 saw a net loss of $220 million, compared to profits in previous quarters. Revenue declined to $3.73 billion in Q3 from $4.08 billion in Q2 2024. The ROE turned negative at -1.88% in Q3, down from positive 11.8% in Q2.

Analyst Sentiment Recent analyst actions indicate cautious optimism. JPMorgan upgraded PFG to Buy with a $92 target in January 2025, citing lower-risk liability profile and improved business outlook. However, Wells Fargo maintains a Sell rating with a $69 target, expressing concerns about organic growth pressures.

Market Performance The stock has underperformed major indices, dropping 6.6% after disappointing Q3 results. Current trading levels are below the average analyst price target of $86.

Based on deteriorating fundamentals, declining profitability metrics, and mixed analyst sentiment, PFG appears to be overvalued at current levels. The negative earnings trend, declining ROE, and revenue contraction suggest potential downside risks that outweigh the seemingly reasonable valuation multiples.

Principal Financial Group, Inc. is a global financial company. The Company offers businesses, individuals and institutional clients a range of financial products and services, including retirement, asset management and insurance through its diverse family of financial services companies. The Company's segments include retirement and income solutions, principal asset management, and benefits and protection. The Retirement and Income Solutions segment offers workplace savings and retirement solutions, banking, trust and custodial services, individual variable annuities, and pension risk transfer, among others. The Principal Asset Management segment provides global investment solutions to institutional, retirement, retail and high net worth investors. The Benefits and Protection segment is organized into Specialty Benefits, which provides group dental, group life insurance, group disability insurance, supplemental health products, and individual disability insurance, and life insurance.

Based on the provided data and market analysis, here's a projection for PFG's stock price in 2030:

Principal Financial Group (PFG) stock is projected to reach approximately $135-140 by 2030, driven by the company's strong market position in retirement solutions and asset management, along with JPMorgan's recent upgrade to overweight status due to its low-risk profile and improved business outlook.

The stock's growth trajectory is supported by the company's robust financial metrics, including a healthy PE ratio of 16.14 and an attractive dividend yield of 3.25%, suggesting sustainable long-term value creation potential.

The company's strategic focus on expanding its retirement and asset management segments, combined with its strong balance sheet and market presence as an $18.3 billion market cap leader, positions it well for steady growth over the next five years.

PFG has a total of 19800 employees.