CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved.

Prudential share price pushes higher ahead of first-half earnings

Prudential has seen it recent rally stall, but it can the share price move higher if there is a more optimistic outlook for the rest of the year?

When is Prudential’s earnings date?

Prudential reports earnings on 11 August, covering the first half (H1) of its financial year.

Prudential earnings – what does the City expect?

Prudential is expected to report earnings of $2.6 billion, up 0.4% from a year ago.

The group’s recent update in May revealed the scale of the challenge it was facing. Its normally fast growing Asian business had suffered due to lockdowns across the region, and while it may well have seen something of a recovery, the rest of the year is likely to be difficult.

Attention on the sector has focused on the fate of dividends, and while there is no expectation of a cut, investors should not hope for too much in the way of an increase for the time being.

At 21 times earnings, Prudential remains just below the 22.7 median of the past five years, and comfortably above the December 2018 valuation of around 18 times earnings.

How to trade Prudential’s earnings

Volatility in Prudential has steadily declined since March, and barring an uptick in mid-June has mostly moved in one direction. A current 14-day average true range (ATR) of 40 points to an average daily move of around 3.2%, compared to 14% back in March.

The last update in May prompted a drop of 5.3% in the share price, while annual results back in March saw a drop of 4%.

Prudential share price – technical analysis

Having rebounded from the late-July low around £11.00, the price finds itself back at trendline resistance from the late-February highs. A rally through £12.50 provides a more bullish view, while a reversal back below £11.00, breaching this support zone, restores the advantage to the sellers.

Prudential looking for a bullish catalyst

While the price has done well to hold support, it still lacks a bullish catalyst to drive it higher. Investors will be hoping that half-year numbers can provide this so that Prudential can stage a break to the upside.

The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer.

Act on share opportunities today

Go long or short on thousands of international stocks with CFDs.

  • Get full exposure for a comparatively small deposit
  • Trade on spreads from just 0.1%
  • Get greater order book visibility with direct market access

See opportunity on a stock?

Try a risk-free trade in your demo account, and see whether you’re on to something.

  • Log in to your demo
  • Take your position
  • See whether your hunch pays off

See opportunity on a stock?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Trade a huge range of popular stocks
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform

See opportunity on a stock?

Don’t miss your chance. Log in to take your position.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.