UK stock alert

UK

CLOSING UPDATE: Prudential up 2.9% in 2 days 26 July 2017 19:05 BST

NEWS BITES - EUROPE

This is an end of day Alert, produced after today's United Kingdom market close. It concludes the BSS News Bites intra-day Alert series (summaries below).

Prudential, the largest life insurance company by market capitalisation in the United Kingdom, extended its gains on Wednesday, rising an additional GBX18.50 (or 1.0%) to trade at GBX1,828.50. Trading volume was 1.4 times average at the end of the day. The shares have risen GBX51.0 (or 2.9%) over the past two trading days vs. the FTSE 100 Index which has risen 1.0% in the same period.

Technical indicators complementing today's significant uptrend:

+ The positive 7.22 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal.

+ In the last one month the stock has hit a new 52-week high twice and in the last three months ten times, pointing to a significant uptrend.

+ The present value of GBP1,000 invested one year ago is GBP1,453 [vs GBP1,108 for the FTSE 100 Index].

Fundamental measures by comparison with the sector average [in brackets] indicate:

Undervaluation:

+ Return on Equity 15.5% [7.0%]

+ Return on Assets 0.5% [0.2%]

Other Bullish Signals include:

+ The company is cash rich with Cash to Market Capitalisation at 51.5%.

+ Interest cover is less leveraged at 9.9 times.

+ Tobin's Q Ratio is 0.1. Compared with the rest of the market the stock is undervalued and ranks in the top 1% of stock by value of Q Ratio.

+ Net profit margin has averaged 5.8% in the last 3 years. This is better than the sector average of 3.5% and suggests a high margin of safety.

+ As per the Du Pont analysis, Return on Equity of 15.5% is better than sector average of 7.0%.

Note

The stock has outperformed 69% of the United Kingdom market over the past 6 months.

Overbought/Bearish:

The 0.2% discount to 12-month high of GBX1,831.50 against the 45.6% premium to 12-month low of GBX1,255.74 suggests the climb might be peaking.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Overvaluation:

Price/Earnings of 24.4 [16.9]

Price/Sales of 0.7 [0.4]

Price to Book of 21.2 [2.3]

Dividend yield of 2.4% [3.4%]

TODAY'S ALERTS

Afternoon Alert: Prudential increases 0.7%, leads Life insurance sector higher

26 July 2017 15:51 BST

Prudential PLC (L:PRU) has increased 0.7% to trade at GBX1,823.50 vs. the Life insurance sector which strengthened 132.7 points (or 0.8%) to 16,732.6. Representing a weighting of about 41.4% of the sector, the stock accounted for 38.6% of today's gain. The shares have outperformed 82% of the market in the past week. Trading volume was 1.1 times average so far today.

Morning Alert: Prudential in 2nd consecutive rise, nears one-month high

26 July 2017 11:23 BST

Prudential PLC (L:PRU) extended its gains Wednesday, rising an additional GBX11.50 (or 0.6%) to trade at GBX1,821.50. The stock increased 1.83% on Tuesday bringing its 2-day rise to 2.5%. It is now approaching its 28-day high of GBX1,823.50.

RECENT ALERTS

CLOSING UPDATE: Prudential decreased 1.2%, led Life insurance sector lower

24 July 2017 19:05 BST

Prudential, the largest life insurance company by market capitalisation in the United Kingdom, has decreased 1.2% to trade at GBX1,777.50 vs. the Life insurance sector which weakened 197.0 points (or 1.2%) to 16,386.9. Representing a weighting of about 41.2% of the sector, the stock accounted for 43.3% of today's loss. Trading volume was 1.5 times average at the end of the day. Compared with the FTSE 100 Index which fell 75.2 points (or 1%) in the day, this represented a relative price change of -0.2%.

Morning Alert: Prudential decreases 0.9% on robust volume

24 July 2017 11:23 BST

Prudential PLC (L:PRU) traded on heavy volume of 1.5 times average so far today while the price decreased GBX17.0 (or 0.9%) to trade at GBX1,783.0.

Prudential PLC (L:PRU; LON:PRU; LN:PRU)

ISIN: GB0007099541

PermID: 8589934227

Source: www.BuySellSignals.com