Principal Financial Stock Target Price and Analyst Consensus

PFG
 Stock
  

USD 68.79  0.57  0.84%   

The current analyst and expert consensus on Principal Financial is Hold with 6 hold recommendations. The current projected Principal Financial target price consensus is 72.88 with 8 analyst opinions. One of the most common ways Principal Financial analysts use to provide buy-or-sell recommendation to the public are conference calls analysis and financial statements evaluations. Some experts can also talk to Principal Financial vendors, executives, and/or customers. Note, the total number of analysts currently providing their opinion is not significant to determine adequate consensus on Principal Financial. We strongly encourage you to use your own analysis of Principal Financial to validate this buy or sell advice. Principal Financial recommendation module provides expert sentiment on the projected Principal Financial target price to derive its highest and lowest estimates based on target price standard deviation of 6.916. Please check Macroaxis Advice on Principal Financial to cross-verify analyst projections. Unlike analyst recommendations, Macroaxis provides advice only from the perspective of investor risk tolerance and investment horizon.
  
As of August 8, 2022, Gross Profit is expected to decline to about 6.5 B. In addition to that, Profit Margin is expected to decline to 10.65. Principal Financial Cash and Equivalents is projected to decrease significantly based on the last few years of reporting. The past year's Cash and Equivalents was at 2.33 Billion. The current year Tax Liabilities is expected to grow to about 2.2 B, whereas Total Assets are forecasted to decline to about 255.2 B.

Principal Financial Target Price Consensus

We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. Principal target price is determined by taking all analyst projections and averaging them out. There is no one specific way to measure analysts performance other than comparing it to the past results via a very sophisticated attribution analysis. Principal target price projections below should be used in combination with other traditional price prediction techniques such as stock price forecasting, investor sentiment analysis, technical analysis, earnings estimate, and various momentum models.
Number of Opinions8
Lowered Outlook0
Raized Outlook0
Hold
Most Principal analysts issue ratings four times a year, at intervals of three months. Ratings are usually accompanied by a target price to helps potential investors understand Principal stock's fair price compared to its market value. Analysts arrive at stock ratings after researching public financial statements of Principal Financial, talking to its executives and customers, or listening to those companies' conference calls.
Macroaxis Advice   Exposure   Valuation

Principal Financial Target Price Projection

Principal Financial's current and average target prices are 68.79 and 72.88, respectively. The current price of Principal Financial is the price at which Principal Financial Group is currently trading. On the other hand, Principal Financial's target price is what analysts think the stock is worth or could sell for in the future. The more significant the discrepancy between the two prices, the more it stimulates investors to act.

Current Price

Principal Financial Market Quote on 8th of August 2022

Low Price68.54Odds
High Price69.55Odds

68.79

Target Price

Analyst Consensus On Principal Financial Target Price

Low Estimate63.0Odds
High Estimate83.0Odds
Number of Analysts8
Standard Deviation6.916

72.875

Note that most analysts generally publish their price targets in research reports on specific companies, along with recommendations for the company's stock.Although price targets are often quoted in the financial news media, there could be a delay between the publication of the latest analyst outlook on Principal Financial Group and the information provided on this page.

Principal Financial Analyst Ratings

Principal Financial's analyst stock recommendations are determined by taking an average estimate of all analysts we track and classifying them as Strong Buy, Buy, Hold, Strong Sell, or Sell. Ratings generally communicate what analysts sense about Principal Financial stock, and they use a lot of effort and time to analyze it and arrive at a rating. That suggests that analyst recommendations are the outcome of an objective and thorough examination of Principal Financial's financials, market performance, and future outlook by experienced professionals. Principal Financial's historical ratings below, therefore, can serve as a valuable tool for investors.

Analyst Consensus Breakdown

Average Consensus Estimates

About Principal Financial Target Price Projections

Principal Financial's target price is an analyst's projection of its future price. Price targets can be assigned to all types of securities, from complex investment products to stocks such as Principal Financial and even bonds. If the target price is unavailable, it is most likely because there were not enough analyst opinions to come up with a consensus estimate. When setting a price target estimate, an analyst is trying to determine what the Stock is worth and where the price will be in a year from now. Generally, the target price of Principal depends on its intrinsic valuation, beta (i.e., risk over market), and overall volatility. Most analysts publish their price targets in research reports on specific companies, along with their buy, hold, or sell recommendations. Stock price targets are often quoted in the financial news media. Macroaxis uses multiple feeds to provide overall target price projection for Principal Financial Group including analysis of its current option contracts.
Principal Financial's latest option contracts expiring on 2022-08-19 are carrying combined implied volatility of 24.65 with a put-to-call open interest ratio of 0.61 over 26 outstanding agreements suggesting investors are buying more calls than puts on contracts expiring on 2022-08-19. The current put volume is at 12, with calls trading at the volume of 39. This yields a 0.31 put-to-call volume ratio. The Principal Financial option chain provides detailed quote and price information for the current Principal Financial Group option contracts. It shows all of Principal Financial's listed puts, calls, expiration dates, strike prices, and other pricing information.

Open Interest Against 2022-08-19 Option Contracts

Principal Financial option prices can potentially be used to forecast stock returns because most option chains provide information not only about the current prices but also about the future conditions in Principal Financial's lending market. For example, when Principal Financial's puts are not actively trading or completely missing in the marketplace, investors can use it to internalize expected shorting costs. So if an investor is writing a put option on Principal Financial, he or she must hedge the risk by shorting Principal Financial stock over its option's life.
The chart above shows Principal Financial's distribution of open interest by maturity on contracts that have not yet been settled. The area between the two highest points is the projection of the price at expiration. Principal Financial's open interest chart also provides vital information regarding the liquidity of an option. If there is no open interest for Principal Financial's option, there is no secondary market available for investors to trade.

Principal Financial Maximum Pain Price across 2022-08-19 Option Contracts

Max pain usually refers to a trading concept that asserts that market manipulation can cause the market price of particular securities such as Principal Financial close to expiration to expire worthless. According to most research, approximately 10% to 15% of all stock options are exercised, while about 35% expire worthlessly, with roughly 50% traded out before the expiration date. So, Max pain occurs when market makers reach a net positive position across all options at a strike price where option holders stand to lose the most money. By contrast, option sellers may reap the most after selling more options than buying, causing them to expire worthless.
Principal Financial's stock options are financial instruments that give investors the right to buy or sell shares of Principal Financial common stock at a specified price for a given time period. Generally speaking, an option to purchase or sell Principal stock makes it part of the underlying stock when the option's price is tied to the movement of the underlying stock. If Principal Financial's stock price goes up or down, the stock options follow.
Please check Macroaxis Advice on Principal Financial to cross-verify analyst projections. Unlike analyst recommendations, Macroaxis provides advice only from the perspective of investor risk tolerance and investment horizon.

Principal Financial In The Money Call Balance

When Principal Financial's strike price is surpassing the current stock price, the option contract against Principal Financial Group stock is said to be in the money. When it comes to buying Principal Financial's options that are 'In the Money' or 'Out of the Money', the choice depends on your outlook for the underlying security, financial situation, and what you are trying to achieve.
While 'out-of-the-money' option contracts written on Principal Financial Group are typically viewed as the more aggressive, there are potential upsides to purchasing these types of options contracts. For one, the cost to buy an 'Out of the Money' option is lower than the cost to buy an 'In the Money' option. This cost-benefit is due to the fact that at the time of the purchase, 'Out of the Money' contracts have no intrinsic value. So, while the potential for a 100% loss is more significant, the cost and risk to enter the trade are lower.

Principal Current Options Market Mood

Principal Financial's open interest and total value indicators provide investors with the necessary information to digest the overall options buildup for its expiring contracts. In addition, it helps Principal Stock's traders understand whether a recent fall or rise in the market is unreasonable and if the time has come to take contrarian positions. These ratios are calculated based on options trading volumes and current open interest.

Put-to-Call Open Interest

Put-to-Call Volume

Most options investors, including buyers and sellers of Principal Financial's calls and puts, are not very successful. It is estimated that an average options trader loses somewhere between 80% to 90% of the time. Principal Financial's option open interest and volume spread between outstanding puts and calls are regarded by many investors as reliable indicators of the overall future market direction. Using current Principal Financial's option volume and open interest to make an investment decision is considered a contrarian-sentiment measure that can be utilized in many timing strategies in both derivative and spot marketplace.

Additional Principal Financial Value Projection Modules

Most investment researchers agree that the mispricing and readjustment of any Stock value happens often and is sometimes even predictable, but there is no strong theory explaining why it happens. The current price of Principal Financial is a key component of Principal Financial valuation and have some predictive power on the future returns of a Principal Financial.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Principal Financial's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Principal Financial in the context of predictive analytics.
Hype
Prediction
LowEstimated ValueHigh
67.0168.9670.91
Details
Intrinsic
Valuation
LowReal ValueHigh
68.4170.3672.31
Details
Earnings
Estimates (4)
LowProjected EPSHigh
6.506.546.57
Details
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Principal Financial. Your research has to be compared to or analyzed against Principal Financial's peers to derive any actionable benefits. When done correctly, Principal Financial's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Principal Financial.

Additional Principal Financial Value Projection Modules

Most investment researchers agree that the mispricing and readjustment of any Stock value happens often and is sometimes even predictable, but there is no strong theory explaining why it happens. The current price of Principal Financial is a key component of Principal Financial valuation and have some predictive power on the future returns of a Principal Financial.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Principal Financial's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Principal Financial in the context of predictive analytics.
Hype
Prediction
LowEstimated ValueHigh
67.0168.9670.91
Details
Intrinsic
Valuation
LowReal ValueHigh
68.4170.3672.31
Details
Earnings
Estimates (4)
LowProjected EPSHigh
6.506.546.57
Details
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Principal Financial. Your research has to be compared to or analyzed against Principal Financial's peers to derive any actionable benefits. When done correctly, Principal Financial's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Principal Financial.

Trending Themes

If you are a self-driven investor, you will appreciate our idea-generating investing themes. Our themes help you align your investments inspirations with your core values and are essential building blocks of your portfolios. A typical investing theme is an unweighted collection of up to 20 funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of equities with common characteristics such as industry and growth potential, volatility, or market segment.
Momentum
Invested few shares
ISP
Invested over 20 shares
Technology
Invested over 20 shares
Macroaxis Index
Invested over 20 shares
Please check Macroaxis Advice on Principal Financial to cross-verify analyst projections. Unlike analyst recommendations, Macroaxis provides advice only from the perspective of investor risk tolerance and investment horizon. Note that the Principal Financial information on this page should be used as a complementary analysis to other Principal Financial's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.

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When running Principal Financial price analysis, check to measure Principal Financial's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Principal Financial is operating at the current time. Most of Principal Financial's value examination focuses on studying past and present price action to predict the probability of Principal Financial's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Principal Financial's price. Additionally, you may evaluate how the addition of Principal Financial to your portfolios can decrease your overall portfolio volatility.
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The data published in Principal Financial's official financial statements usually reflect Principal Financial's business processes, product offerings, services, and other fundamental events. But there are other numbers, ratios, or fundamental indicators derived from these statements that are easier to understand and visualize within the underlying realities that drive quantitative information of Principal Financial. For example, before you start analyzing numbers published by Principal accountants, it's critical to develop an understanding of what Principal Financial's liquidity, profitability, and earnings quality are in the context of the Financial Services space in which it operates.
Please note, the presentation of Principal Financial's financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Principal Financial's management is honest, while the outside auditors are strict and uncompromising. Whatever the case, the imprecision that can be found in Principal Financial's accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of Principal Financial Group. Please utilize our Beneish M Score to check the likelihood of Principal Financial's management to manipulate its earnings.