Here's My Top Value Stock to Buy Right Now
Prudential Financial (NYSE: PRU) just weathered quite a storm for its business. For an insurance giant that prides itself on being financially rock solid, the recent economic situation was incredibly rough.
In particular, rising interest rates played havoc for the company, as it owns over $300 billion in bonds, all held as available for sale or as trading positions. When interest rates rise, the prices of existing fixed-rate bonds fall. In its 2022 annual report, Prudential Financial indicated that it had nearly $30 billion in interest rate related risks on its balance sheet, down from $40 billion the previous year.
Now that the Federal Reserve has indicated that it thinks it is done boosting rates, and indeed, that it might lower them in 2024, that rate-related pressure looks to be behind Prudential Financial. Given its bond-heavy balance sheet, the easing of those pressures is a key driver of why Prudential Financial is my top value stock to buy right now.
Source Fool.com
