Prudential Financial Inc
PRU: XNYS (USA)
| Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
|---|---|---|---|
| $198.00 | Mccb | Bdskvyml |
Low Interest Rates Are a Headwind for Prudential but Higher Markets Boosting PGIM
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Business Strategy and Outlook
Prudential Financial, like other life insurers, is operationally leveraged to capital markets. Low interest rates have been an ongoing headwind in recent years, and became a greater headwind amid COVID-19. It’s unlikely that interest rates return to historical levels and thus we expect Prudential to continue to face this headwind for the foreseeable future.