Analysts have been under intense pressure in recent months as they try to make sense of the impact of Covid-19 on companies like Prudential (LON:PRU).
As one of just 200 shares in the UK market valued at more than £1.0 billion (its market cap is £33,080m), Prudential is well covered by analysts who will know better than most how the economic conditions will affect it.
So how have the shares performed over the past year?
On a 12 month basis, the Prudential share price has seen an absolute move of 3.55%. On a relative basis - which take into account the movement of the wider market - the shares have moved by 16.1% over the past year and by 3.32% over the past six months.
But what now?
Do analysts rate it as a buy, sell or hold?
Regardless of recent performance, the main question is what the future holds. In uncertain economic conditions, it's often difficult to get an accurate view. The good news is that analysts generally have a solid understanding of the market's biggest businesses, so they are well-placed to make predictions. That shows up in their Buy, Hold and Sell recommendations.
Among the analysts covering Prudential, there are currently:
- 1 Buy recommendations
- 4 Hold recommendations
- 0 Sell recommendations
With this kind of information, it's possible to start forming a view about the outlook for any share. A combination of recent price performance and analyst recommendations gives you a flavour of whether the market is expecting a bright future - or whether there are causes for concern.
It's also worth looking at the profile of the stock to understand whether it has strong positive exposure to important factors like Quality, Value and Momentum. On that basis, Stockopedia currently classifies Prudential as a style neutral.
What does this mean for potential investors?
Prudential is one of the most closely watched shares in the market. But while price trends and broker recommendations can give you an idea about the sentiment around a stock, they can't tell you everything.
To get a better understanding of the overall investment case, it's worth doing some investigation yourself.
Disclaimer: These articles are provided for information purposes only. The content is not intended to be a personal recommendation. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser. The author has no position in the stocks mentioned, unless otherwise stated.