Reasons Why Investors Should Retain Principal Financial Stock Now

Principal Financial Group, Inc. PFG has been favored by investors on the back of strategic buyouts, financial flexibility, strong retention, business growth, positive net cash flow and effective capital deployment.PFG’s Zacks Rank & Price PerformancePrincipal Financial currently carries a Zacks Rank #3 (Hold). The stock has lost 0.9% in the past year against the industry’s growth of 11.1%.PFG Price PerformanceImage Source: Zacks Investment ResearchEstimates for Principal FinancialThe Zacks Consensus Estimate for Principal Financial’s 2025 earnings per share and revenues indicates an increase of 19.3% and 6.2%, respectively, from the corresponding 2024 estimates.Factors Benefiting PFG StockPrincipal Financial’s revenue growth is expected to improve in the long run, riding on higher premiums and other considerations, fees and other revenues, and improved net investment income across its segments. The Principal International segment is likely to benefit from higher single-premium annuity sales in Chile. The segment’s operating earnings should gain from foreign currency tailwinds.The Specialty Benefits Insurance business should continue to gain from record sales, strong retention and employment growth. Growth in the business, favorable claims and disciplined expense management should benefit its pre-tax operating earnings.Strong institutional flows across equities, real estate and specialty fixed income, highlighting the value of diversified distribution through its institutional, retail and retirement channels, are likely to drive positive net cash flow.  Principal Financial’s extensive distribution footprint, strategic buyouts and operational discipline should enhance the assets under management growth.PFG boasts a strong capital position, with sufficient cash generation capabilities and liquidity. To reflect the business mix and risk profile, PFG lowered the target RBC level from the previous 400% to a range of 375-400%.For 2024, PFG remains well-positioned to deliver on enterprise long-term financial targets, with 9% to 12% growth in earnings per share and 75% to 85% free capital flow conversion.PFG’s Distribution of WealthPrincipal Financial’s wealth distribution through share buybacks and dividend payments looks impressive. In the third quarter of 2024, PFG raised the dividend by 9% for the sixth consecutive quarter, aligned with the targeted 40% dividend payout ratio, demonstrating confidence in continued growth and overall performance. It also boasts a solid dividend yield of 3.6%, higher than the industry average of 2.4%. PFG remains committed to returning excess capital to shareholders and continues to expect $1.5-$1.8 billion of capital deployment for 2024, including $800 million to $1.1 billion of share repurchases. Based on net income, excluding exited business, the company targets 35-45% share repurchases in 2024.Stocks to ConsiderInvestors interested in the multi-line insurance industry may look at some better-ranked players like CNO Financial Group, Inc. CNO, EverQuote, Inc. EVER and Assurant, Inc. AIZ. While CNO Financial Group and EverQuote sport a Zacks Rank #1 (Strong Buy) each, Assurant carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for CNO Financial Group’s 2025 earnings per share and revenues implies year-over-year growth of 0.6% and 3.8%, respectively. It beat earnings estimates in three of the past four quarters and missed in one, with an average surprise of 24.51%. In the past year, shares of CNO have rallied 39.6%.The Zacks Consensus Estimate for EverQuote’s 2025 earnings per share and revenues implies year-over-year growth of 10.7% and 18.8%, respectively. It beat earnings estimates in each of the past four quarters, with an average surprise of 149.58%. In the past year, shares of EVER have rallied 77.9%.The Zacks Consensus Estimate for Assurant’s 2025 earnings per share and revenues implies year-over-year growth of 16.7% and 3.4%, respectively. It beat earnings estimates in each of the past four quarters, with an average surprise of 20.3%. In the past year, shares of AIZ have rallied 25.1%.Research Chief Names "Single Best Pick to Double"From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CNO Financial Group, Inc. (CNO): Free Stock Analysis Report Assurant, Inc. (AIZ): Free Stock Analysis Report Principal Financial Group, Inc. (PFG): Free Stock Analysis Report EverQuote, Inc. (EVER): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks