Is Principal Financial Group (PFG) Still Undervalued After Its Recent Share Price Momentum?

Principal Financial Group (PFG) has quietly put together a solid run, with the stock up about 6% over the past month and roughly 13% year to date, outpacing many peers in the financial sector.

See our latest analysis for Principal Financial Group.

At around $87.52 a share, Principal’s steady climb, including a solid year to date share price return, lines up with improving sentiment around its earnings resilience and income-focused profile. Multi year total shareholder returns underscore that this has not been a one quarter story.

If Principal’s momentum has you thinking about where else the market is rewarding consistency, now is a good time to discover fast growing stocks with high insider ownership.

With shares hovering just below analyst targets yet trading at a steep discount to some intrinsic value estimates, the key question now is whether Principal remains mispriced or if the market is already accounting for its future growth.

Most Popular Narrative Narrative: 1.8% Undervalued

With Principal Financial Group last closing at $87.52 against a narrative fair value near $89, the story hinges on steady, compounding fundamentals rather than explosive growth.

The analysts have a consensus price target of $86.0 for Principal Financial Group based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $101.0, and the most bearish reporting a price target of just $72.0.

Read the complete narrative.

Curious how moderate top line expansion, margin rebuild and shrinking share count can still point to upside from here? The full narrative unpacks the precise growth runway, profit translation and valuation multiple that underpin this near fair value call, and reveals which future earnings profile has to materialize to justify it.

Result: Fair Value of $89.08 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent institutional outflows and softer dental pricing could sap revenue momentum, reducing the impact of margin rebuild and buybacks on future returns.

Find out about the key risks to this Principal Financial Group narrative.

Build Your Own Principal Financial Group Narrative

If you see the story playing out differently or want to dig into the numbers firsthand, you can build a custom view in minutes: Do it your way.

A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding Principal Financial Group.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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