Des Moines, Iowa-based Principal Financial Group, Inc. (PFG) provides retirement, asset management, and insurance products and services to businesses, individuals, and institutional clients. Valued at a market cap of $18 billion, the company’s services include pension plans, annuities, mutual funds, asset management, life insurance, and specialty benefits, helping clients save, invest, protect, and retire.

Companies worth $10 billion or more are typically classified as “large-cap stocks,” and PFG fits the label perfectly, with its market cap exceeding this threshold, underscoring its size, influence, and dominance within the asset management industry. The company’s strength lies in its diverse portfolio of retirement, investment, and insurance solutions, which provides stable, recurring revenue and resilience across market cycles. 

This financial services company is currently trading 12.1% below its 52-week high of $91.98, reached on Oct. 17, 2024. Shares of PFG have gained 6.7% over the past three months, underperforming the S&P 500 Index’s ($SPX) 10.3% return during the same time frame.

In the longer term, PFG has fallen 3.5% over the past 52 weeks, considerably lagging behind SPX's 17.1% uptick over the same time period. Moreover, on a YTD basis, shares of PFG are up 4.5%, compared to SPX’s 12.2% surge.

To confirm its recent bullish trend, PFG has been trading above its 200-day moving average since late August, with slight fluctuations, and has remained above its 50-day moving average since mid-August, with slight fluctuations.

Shares of PFG tumbled marginally on Jul. 28, after its Q2 earnings release. The company's adjusted EPS of $2.16 improved 32.5% from the year-ago quarter, handily surpassing consensus estimates of $1.98. Moreover, its Assets Under Management (AUM) expanded by 7.7% year-over-year to $752.7 billion, reflecting healthy net inflows. 

PFG has also lagged behind its rival, Corebridge Financial, Inc. (CRBG), which soared 17.4% over the past 52 weeks and 5.7% on a YTD basis. 

Looking at PFG’s recent underperformance, analysts remain cautious about its prospects. The stock has a consensus rating of "Hold” from the 15 analysts covering it, and the mean price target of $85.92 suggests a 6.3% premium to its current price levels.