PFG | SHORT NASDAQ:PFG
Technical Analysis of Principal Financial Group Inc (PFG)
Key Observations:
Current Price Action:
Price: $75.41
Recent Drop: -4.05 (-5.10%)
Support and Resistance Levels:
Immediate Support: $72.63 (Target Price 1)
Further Supports: $68.67 (Target Price 2), $64.54 (Target Price 3), and $58.88 (Target Price 4)
Resistance: The price has broken below several support levels indicating potential further downside.
Trendlines:
The price has broken below a key upward trendline, signaling a potential shift from a bullish to a bearish trend.
Relative Strength Index (RSI):
Current RSI: 40.49
The RSI is nearing the oversold zone, indicating increasing selling pressure and potential for further declines.
Target Prices:
Target Price 1: $72.63
This level is the immediate support and a potential first target for any continued downward movement.
Target Price 2: $68.67
If the price breaks below the immediate support, the next target is around $68.67, a previous support level.
Target Price 3: $64.54
Further downside could see the price reaching $64.54, another key support level.
Target Price 4: $58.88
In a more bearish scenario, the price could fall to $58.88, a significant support level.
Summary:
Principal Financial Group Inc (PFG) has experienced a significant drop, breaking below several key support levels and its upward trendline. The next levels to watch are $72.63, $68.67, $64.54, and $58.88. The RSI indicates potential for further declines if market conditions remain negative.
PFG trade ideas
Stocks pairs trading: BEN vs PFGWhen evaluating the investment potential between Franklin Resources, Inc. (BEN) and Principal Financial Group, Inc. (PFG) using a stock pairs strategy, several key metrics guide the decision to buy BEN and sell PFG.
Reasons to Consider Buying BEN:
Attractive Valuation and Growth Potential: BEN's forward P/E of 8.53 is notably lower than PFG's forward P/E of 9.28. This valuation suggests that BEN is relatively undervalued, especially considering its expected EPS growth next year of 14.49% compared to PFG's 11.05%. BEN’s EPS growth next year is anticipated at $2.91 compared to PFG's $8.45, which, when adjusted for the P/E ratios, offers a more attractive growth relative to valuation.
Market Performance and Dividend Yield: Despite recent underperformance in the short term (-5.67% over the past week and -7.63% over the month for BEN), it offers a higher dividend yield of 5.00% compared to PFG’s 3.62%. This higher yield may appeal to dividend-focused investors, especially in volatile markets.
Stable Insider Ownership: BEN has a substantial insider ownership at 45.78%, which often signals confidence in the company’s future by its management and major stakeholders. In contrast, PFG has significantly lower insider ownership at 0.65%.
Reasons to Consider Selling PFG:
Concerns Over High Valuation and Lower Growth Projections: Although PFG shows a lower forward P/E compared to its historical P/E (32.40), it is still higher than BEN's. Coupled with a lower projected EPS growth next year (11.05% for PFG vs. 14.49% for BEN), this suggests that PFG might be overvalued relative to its growth prospects.
Financial Performance and Profitability Indicators: PFG’s ROI and ROE are 4.15% and 5.96%, respectively, which are lower than one might prefer for robust financial health. BEN, with a higher ROE of 7.85% and positive insider buying trends, indicates potentially more robust financial health and confidence from those within the company.
Market Recovery and Operational Margins: PFG’s operational margin stands at 5.41%, significantly lower than BEN’s 18.06%. This indicates BEN's more efficient management of expenses relative to its revenue, a critical factor during economic uncertainty or market volatility.
Decision:
Buy 3 BEN : Given its lower valuation relative to growth, higher dividend yield, and stronger insider confidence, BEN emerges as a strategic buy. Its valuation and profitability metrics suggest it is undervalued, providing a favorable opportunity for investors looking for growth at a reasonable price.
Sell 1 PFG: Considering PFG’s relatively higher valuation with lower growth prospects and weaker profitability indicators, it might be prudent for investors to reconsider their positions in PFG. Selling PFG could allow reallocating investments towards more undervalued opportunities like BEN, which offers a better growth outlook and more attractive valuation.
PFG - Bullish Assumptions Inverted H&S has been completed on chart, this is shown in green circles
I am expecting this right shoulder move however to push price up further, towards the dashed white line above, this is also shown with the bars pattern in green.
The overall structure of this chart looks quite bullish in my eyes.
PFG Bull flag I own some in my portfolio. Nice long bull trend. Bull flag is a continuation pattern in a long uptrend. The way I play a bull flag like this is to buy when the stock breaks out of the upper flag channel (above 92.53). Stop at 90.70 (C). A breakout would take PFG on to test prior high at (B) 96.17, at which point it would either breakout to new highs or repel backward to form a double top. A bull target on a flag like this would be a 1.618 extension to 99.46 (D).
P&L & W/L:
Buy at 92.53, Stop 90.70; take profit at (B) 96.17.
Max win: 3.93%
Max Loss: 1.98%.
W/L: 2 to 1
Buy at 92.53, Stop 90.70; take profit at (D) 99.46.
Max win: 7.5%
Max Loss: 1.98%.
W/L: 3.78 to 1
XLF (financials) sector has shown some bullishness, and PFG is a financial which has bucked the bear. A bull flag like this has shwon a 66% chance of continuation in a bull. (rarely reverses). But heed the stops just in case.
Always be aware of the round benchmark numbers ($100)-- they can be stubborn to break through.
BUY to PRINCIPAL FINANCIAL GROUP DailyHey guys, PRINCIPAL FINANCIAL GROUP is in a fake bearish push with a large body water-carrying candle marked with buyers and a false return of sales volume. On the TIMEFRAME M1 we notice a dash with a low volume of purchase issued, it goes towards the highest of the bollinger to test it. After giving up this level, she will go on the VWAP and break it in force then go to the top of the stabilization zone for a new check.
Great potential to break the price with a return of momentum from the carriers, both the zone to arrive in one second and reach the next high. With excess (for TIMEFRAME H4) then passing (on TIMEFRAME H1) we also see before the breakout of this one. Not enough buying power to test half of the intermediate median of ANDREWS PITCHFORK.
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PFG: Dark Pool Footprints Show Accumulation in a BottomAs a new generation starts families and buys homes, the growth in Life Insurance also booms. There are several life insurance companies forming bottoms right now and many are nearing completion for future position trading, intermediate term holds or even long term holds.
This chart has a specific footprint in the chart patterns that confirms the bottom has begun with accumulation from the Dark Pools. The bottom completion should be confirmed before entry for position-style to longer-term as it could easily retest its lows several more times while you are holding in the red waiting for the move up. Always, buy into strength.
$PFG - Take this into consideration. Hit the intraday-upcoming earnings scanner (07/26). Weekly w/ MACD looked somewhat attractive but, glad I got a second look on the T.V chart. You can scroll back to 2009 to get a better glimpse of the similarities. The price labels (both current & before 09 recession) - surreal. To say the least.