Should I buy Prudential stock in the United Kingdom this year?
Is it the right time to buy Prudential?
ScoreAs of early July 2025, Prudential PLC (PRU.L) trades at approximately 905 GBp, with a robust average daily trading volume of around 6.2 million shares, reinforcing its high liquidity and appeal to both domestic and international investors. This year, the stock price has demonstrated strong momentum, advancing over 25% year-on-year and outperforming many peers within the UK financials sector. Notable recent events include the successful launch of a new share buyback programme in July and consistently healthy quarterly earnings, most recently featuring a double-digit increase in new business profit. Market sentiment remains constructive, buoyed by Prudential's strategic push into high-growth Asian and African markets and rapid digital transformation. While short-term technical indicators suggest some consolidation, the long-term trajectory remains upward, supported by the company’s operational strength and favourable sector trends: demographic expansion and greater demand for life insurance across emerging economies. Backed by the consensus of more than 14 leading national and international banks, the current target price is set at 1,174 GBp, reflecting confidence in Prudential's ability to deliver sustainable value. At its current valuation and with a forward-looking approach, Prudential presents a compelling case for consideration among UK retail investors seeking growth in global insurance.
- ✅Strong double-digit growth in new business profit for two consecutive years
- ✅Expanding footprint in fast-growing Asian and African insurance markets
- ✅Solid digital innovation in life insurance and asset management solutions
- ✅Active share buyback programme and rising dividends support shareholder value
- ✅Well-established brand with dominant positions in key emerging economies
- ❌Exposure to regulatory shifts and macroeconomic volatility in Asian markets
- ❌Continued dependence on Hong Kong and China, despite efforts to diversify
Score- ✅Strong double-digit growth in new business profit for two consecutive years
- ✅Expanding footprint in fast-growing Asian and African insurance markets
- ✅Solid digital innovation in life insurance and asset management solutions
- ✅Active share buyback programme and rising dividends support shareholder value
- ✅Well-established brand with dominant positions in key emerging economies
Is it the right time to buy Prudential?
- ✅Strong double-digit growth in new business profit for two consecutive years
- ✅Expanding footprint in fast-growing Asian and African insurance markets
- ✅Solid digital innovation in life insurance and asset management solutions
- ✅Active share buyback programme and rising dividends support shareholder value
- ✅Well-established brand with dominant positions in key emerging economies
- ❌Exposure to regulatory shifts and macroeconomic volatility in Asian markets
- ❌Continued dependence on Hong Kong and China, despite efforts to diversify
Score- ✅Strong double-digit growth in new business profit for two consecutive years
- ✅Expanding footprint in fast-growing Asian and African insurance markets
- ✅Solid digital innovation in life insurance and asset management solutions
- ✅Active share buyback programme and rising dividends support shareholder value
- ✅Well-established brand with dominant positions in key emerging economies
- What is Prudential?
- What is the Prudential stock price?
- Our full analysis of the Prudential stock
- How to buy Prudential stock in the UK?
- Our 7 tips for buying Prudential stock
- The latest news about Prudential
- FAQ
Why trust HelloSafe ?
At HelloSafe, our expert has been tracking the performance of Prudential for over three years. Every month, hundreds of thousands of users in the UK trust us to decipher market trends and identify the best investment opportunities. Our analyses are provided for informational purposes and do not constitute investment advice. In accordance with our ethical charter, we have never been, and will never be, paid by Prudential.
What is Prudential?
| Indicator | Value | Analysis |
|---|---|---|
| 🏳️ Nationality | United Kingdom | UK-based with a global footprint, significant presence in Asia. |
| 💼 Market | London Stock Exchange (LSE) | Listed on the LSE enhances credibility and market access. |
| 🏛️ ISIN code | GB0007099541 | Standard identification for trading and regulatory compliance. |
| 👤 CEO | Anil Wadhwani | CEO drives digital innovation and Asian expansion strategy. |
| 🏢 Market cap | £23.24bn | Large cap underlines its sector leadership and stability. |
| 📈 Revenue | $2.64bn operational free surplus (2024) | Strong business generated mainly from Asia's fast-growing markets. |
| 💹 EBITDA | Not separately disclosed | Focus lies on operational surplus rather than EBITDA metric. |
| 📊 P/E Ratio (Price/Earnings) | 14.59 | Attractive valuation with room for future earnings growth. |
What is the Prudential stock price?
The price of Prudential stock is rising this week. As of now, Prudential trades at 905.20 GBp, reflecting a 24-hour move down by 0.92% yet maintaining a stable weekly trend. The company's market capitalisation stands at £23.24 billion, with a robust three-month average volume of 6.22 million shares. Prudential's current P/E Ratio is 14.59, the dividend yield stands at 1.91%, and the stock beta is 1.21. With solid fundamentals and moderate volatility, Prudential continues to offer notable investment potential in the GB market.
Our full analysis of the Prudential stock
We have thoroughly reviewed Prudential’s most recent financial results alongside the stock’s performance over the past three years. Our proprietary algorithmic approach synthesises financial metrics, technical signals, market data, and peer benchmarks to provide a multidimensional, expert-level analysis. So, why might Prudential stock once again become a strategic entry point into the global insurance and asset management sector in 2025?
Recent performance and market context
Prudential has emerged as one of the FTSE’s most resilient and forward-looking financials, standing at 905.20 GBp as of early July 2025. The stock has delivered a 6-month surge of +44.7% and a robust +25.9% rise over the past year, outpacing much of its sector. This performance is underpinned by consistent new business profit growth—Q1 2025 saw a +12% increase—reflecting Prudential’s ability to capture high-quality opportunities across expanding Asian and African markets. Recent events, including the launch of a new share buyback programme in July and robust full-year earnings, reinforce market confidence.
The macroeconomic environment remains favourable: demographic expansion in Asia and Africa, ongoing digital transformation in financial services, and global risk diversification trends are providing powerful sector tailwinds. Analyst sentiment has brightened, with 14 “Buy” recommendations reflecting renewed confidence in Prudential’s strategic direction.
Technical analysis
Current technical readings support an optimistic outlook. Prudential’s price is consolidating just above its 200-day moving average (898.01 GBp)—a classic bullish signal reflecting long-term strength.
- RSI (14 days): 44.3 – in neutral territory, allowing for upside moves before overbought levels are reached.
- MACD: -1.81 – a short-term cooling after the recent rally, often preceding bullish reversals in stocks with strong fundamentals.
- Moving Averages: 20-day (908.02 GBp), 50-day (910.48 GBp), and 100-day (910.11 GBp) all in line with or just ahead of the current price, signalling robust support and potential for upward moves if catalysts materialise.
- Support and Resistance: Immediate support at 900.20 GBp and resistance at 939.00 GBp gives a well-defined risk/reward setup.
Momentum, though briefly paused, remains structurally positive in both the short- and medium-term contexts, particularly as the stock continues to outperform its peers on rebounds from technical support zones.
Fundamental analysis
- Revenue and Earnings Growth: Double-digit new business profit growth (+11% in 2024, +12% in Q1 2025), supported by operational surplus generation ($2.64bn in 2024) and expanding market reach.
- Profitability: The group’s scale and operational excellence generate rising margins, confirmed by a 13% hike in the 2024 dividend (now 23.13 cents/share).
- Valuation: The trailing P/E ratio of 14.59 remains attractive relative to sector peers, with room for multiple expansion as Asian and African businesses mature.
- Strategic Expansion: Clear leadership in the fast-growing Asia and Africa life insurance and asset management markets, segments driven by compelling demographic and macroeconomic factors.
- Structural Strengths:
- Innovation: Leader in digital solutions for insurance and wealth management.
- Brand power: Established since 1848, Prudential’s name is synonymous with trust and market leadership.
- Market differentiation: Diversified, capital-light business model targeting high-growth regions and new middle-class consumers.
The group has successfully diversified geographic risks, reducing its dependency on Hong Kong and China, and positioning itself as a broadly pan-Asian-African champion.
Volume and liquidity
Prudential’s shares enjoy exceptional liquidity, with a robust 3-month average daily volume of 6.22 million. The company’s £23.24 billion market capitalisation ensures it is a mainstay for both institutional and private investors, supporting dynamic valuation and efficient market pricing. The sizeable, actively traded float makes tactical position management highly effective, whether for short-term trades or long-term accumulation.
Catalysts and positive outlook
- Ongoing expansion in Asia and Africa: Penetration of high-growth, underinsured markets powered by demographic tailwinds and rising middle-class incomes.
- Digital transformation: State-of-the-art digital initiatives enhance access to new customers and streamline cost structures, offering scalable earnings benefits.
- Favourable regulatory and sector backdrop: Many Asian/EM governments are prioritising insurance development, deepening Prudential’s strategic opportunities.
- Buyback programme: The July 2025 launch of a new tranche underscores management’s confidence and provides a ready support for per-share value.
- ESG & sustainable finance: Prudential’s ESG focus connects well with institutional allocation trends, enhancing the group’s strategic appeal.
Analyst consensus remains bullish, projecting ongoing double-digit new business growth with a clear path to further margin improvement and earnings per share expansion across coming reporting periods.
Investment strategies
- Short term: The share price trades near 200-day moving average support, often a prime location for tactical positions. The modest pullback from recent highs presents an accessible entry for momentum-focused investors, especially ahead of coming business updates.
- Medium term: Major operational catalysts—including the ongoing buyback and Q2 reporting—align with the group’s stable growth trajectory, establishing a constructive outlook for re-rating potential.
- Long term: Prudential’s pan-regional scale, market expertise, and twin engine of insurance and asset management make it uniquely positioned to capture compounding returns from Asian and African economic growth. Structural competitive advantages, sticky customer relationships, and the dividend’s upward trajectory reinforce its portfolio anchoring qualities.
Risk is mitigated by the group’s capital strength and diversified presence. The stock’s beta of 1.21 conveys healthy, but not excessive, volatility—well-suited to investors seeking both growth and defensive characteristics.
Is it the right time to buy Prudential?
In summary, Prudential’s outstanding financial growth, innovative leadership, and leading market position in the world’s fastest-developing regions combine to form a compelling investment case. The stock’s technicals highlight robust support and breakout opportunity, while fundamentals—top-line growth, operational surplus, dividend progression—justify renewed interest from both value and growth investors. With compelling demographic and digital catalysts ahead, Prudential clearly seems to represent an excellent opportunity for those seeking exposure to long-term global insurance and asset management trends.
As sector and company-specific catalysts come into focus, and with technical support levels solidifying, Prudential may be entering a new bullish phase—giving investors every reason to consider its potential as a core portfolio holding for the years to come.
How to buy Prudential stock in the UK?
Buying Prudential stock online has never been easier or more secure for UK investors. These days, you can invest in Prudential shares safely through a regulated broker, benefiting from strong protections. There are two main ways to gain exposure: purchasing the shares directly (spot buying) or trading Contracts for Difference (CFDs) for more flexible, leveraged strategies. If you’re not sure which method suits you best, you’ll find a detailed broker comparison further down the page.
Spot buying
A cash (spot) purchase of Prudential stock means buying the actual shares to own outright in your investment account. This is the traditional, straightforward approach suitable for most investors seeking long-term growth and dividends. Brokers typically charge a fixed commission per order, usually between £5 and £10, payable in GBP.
Gain scenario
If the Prudential share price is 905 GBp (about £9.05), you can buy around 110 shares with a £1,000 stake, including a brokerage fee of around £5.
If the share price rises by 10%, your shares are now worth £1,100.
Result: +£100 gross gain, i.e. +10% on your investment.
Trading via CFD
CFD trading on Prudential shares allows you to speculate on price movements without actually owning the underlying equity. CFDs are popular among active traders because they allow you to use leverage. Fees include the spread (difference between buy/sell price) and overnight financing for positions held longer than a day.
Gain scenario
You open a CFD position on Prudential shares, with 5x leverage, using a £1,000 stake. This gives you a market exposure of £5,000.
If the stock rises by 8%, your position gains 8% × 5 = 40%. Result: +£400 gain, on a bet of £1,000 (excluding fees).
Final advice
Before you invest, it’s essential to compare brokers’ fees, trading conditions, and available platforms, since these vary from provider to provider. Ultimately, the right approach depends on your individual goals—some investors prefer direct ownership for the long term, while others use CFDs to seek short-term opportunities. You’ll find a comprehensive broker comparison further down the page to help you make an informed choice.
Compare the best brokers in the UK!Compare brokersOur 7 tips for buying Prudential stock
| 📊 Step | 📝 Specific tip for Prudential |
|---|---|
| Analyze the market | Review Prudential’s current performance in the UK’s financial sector and track trends in Asian life insurance growth. |
| Choose the right trading platform | Opt for a regulated UK broker with access to LSE and transparent fees for trading Prudential shares. |
| Define your investment budget | Set a clear budget, remembering Prudential offers competitive growth potential but that diversification reduces risk. |
| Choose a strategy (short or long term) | Consider a long-term strategy to benefit from Prudential’s ongoing expansion in Asia and its resilient dividend record. |
| Monitor news and financial results | Follow Prudential’s quarterly earnings, dividend announcements, and major events like share buybacks to inform decisions. |
| Use risk management tools | Use stop-loss and limit orders to protect your capital and manage short-term market volatility in Prudential shares. |
| Sell at the right time | Evaluate selling after strong price rallies or before significant market events; stay updated on regulatory changes affecting Prudential. |
The latest news about Prudential
Prudential has launched the third tranche of its share buyback programme in July 2025, demonstrating strong capital confidence. This latest phase underscores Prudential's commitment to returning value to shareholders and reinforces the company’s robust capital position, with market reaction in London showing stability and modestly increased buying interest among institutional investors.
Shares remain resilient, trading above the 200-day moving average, confirming a long-term bullish trend. Despite minor volatility, the stock has sustained levels above 900 GBp, with technical signals—such as a positive long-term moving average crossover—supporting continued optimism among UK market participants.
Q1 2025 results confirmed double-digit growth in new business profit, strengthening positive sentiment in the UK market. Prudential posted a 12% increase in new business profit and reaffirmed guidance for annual growth above 10%. This strong operational performance has been well received by both analysts and investors in Great Britain.
Financial guidance and fundamentals remain attractive for UK investors seeking stable and growing dividends. The 2024 dividend was up 13% year-on-year, further complemented by a payout yield of nearly 2%, and the dividend is fully subject to the UK tax regime, ensuring transparency and predictability for domestic shareholders.
Analyst sentiment in the UK has turned increasingly optimistic, with a consensus price target suggesting over 30% upside. The majority of London-based analyst coverage assigns “buy” recommendations, anchored by Prudential’s resilient fundamentals and ambitious long-term growth plans in Asia, supported by its strategic presence and statutory headquarters in London.
FAQ
What is the latest dividend for Prudential stock?
Prudential currently pays a dividend, with the most recent annual payout standing at 23.13 cents per share. This was paid following the 2024 annual results, reflecting the group’s ongoing commitment to rewarding shareholders. The dividend yield is historically stable, and the policy focuses on progressive growth in line with earnings, making the stock attractive for income-minded investors.
What is the forecast for Prudential stock in 2025, 2026, and 2027?
Based on the current price, projections are: 1,176.76 GBp at the end of 2025, 1,357.80 GBp for 2026, and 1,810.40 GBp by 2027. Analyst outlook remains constructive, supported by Prudential’s consistent double-digit business growth, strong market leadership in Asia and Africa, and a positive sector momentum for insurance and asset management.
Should I sell my Prudential shares?
Holding Prudential shares may be a sound choice, as the company’s current valuation is reasonable and its long-term growth outlook remains strong. The group demonstrates strategic resilience, robust performance history, and benefits from continued expansion in high-growth markets. Many analysts also see further upside potential, so retaining shares could align well with a patient, long-term investment approach based on quality fundamentals.
Are Prudential shares eligible for an ISA or special UK tax treatment?
Prudential shares are eligible for inclusion in a UK Individual Savings Account (ISA), meaning any dividends or capital gains realised within the ISA are tax-free for UK residents. Outside of an ISA, dividends are subject to UK dividend tax rates, with no withholding tax applied. This makes Prudential stock particularly favourable for tax-efficient, long-term savings.
What is the latest dividend for Prudential stock?
Prudential currently pays a dividend, with the most recent annual payout standing at 23.13 cents per share. This was paid following the 2024 annual results, reflecting the group’s ongoing commitment to rewarding shareholders. The dividend yield is historically stable, and the policy focuses on progressive growth in line with earnings, making the stock attractive for income-minded investors.
What is the forecast for Prudential stock in 2025, 2026, and 2027?
Based on the current price, projections are: 1,176.76 GBp at the end of 2025, 1,357.80 GBp for 2026, and 1,810.40 GBp by 2027. Analyst outlook remains constructive, supported by Prudential’s consistent double-digit business growth, strong market leadership in Asia and Africa, and a positive sector momentum for insurance and asset management.
Should I sell my Prudential shares?
Holding Prudential shares may be a sound choice, as the company’s current valuation is reasonable and its long-term growth outlook remains strong. The group demonstrates strategic resilience, robust performance history, and benefits from continued expansion in high-growth markets. Many analysts also see further upside potential, so retaining shares could align well with a patient, long-term investment approach based on quality fundamentals.
Are Prudential shares eligible for an ISA or special UK tax treatment?
Prudential shares are eligible for inclusion in a UK Individual Savings Account (ISA), meaning any dividends or capital gains realised within the ISA are tax-free for UK residents. Outside of an ISA, dividends are subject to UK dividend tax rates, with no withholding tax applied. This makes Prudential stock particularly favourable for tax-efficient, long-term savings.
