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Key Takeaways PFG benefits from strength in retirement, asset management and group benefits businesses.Assets under management rose 7% to $770 billion, supported by strong investment sales and inflowsPrincipal Financial supports growth through acquisitions, while returning capital via buybacks and dividends. Shares of Principal Financial Group, Inc. (PFG - Free Report) have gained 36.6% in the past year compared with the industry’s growth of 1.3%. Its share closed at $108.51 on Monday, near its 52-week high of $112.45, reflecting strong investor confidence.

Continued growth in its retirement business, expanding assets under management and a robust capital position should drive further price appreciation.

Shares of some of its peers include CNO Financial Group, Inc. (CNO - Free Report) , Radian Group Inc. (RDN - Free Report) , and MetLife, Inc. (MET - Free Report) , have gained 35.1%, 5% and 6.9%, respectively, in the past year.

1-Year Price Performance: PFG, CNO, MET, RDN & Industry
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PFG’s ValuationPrincipal Financial shares are trading at a forward 12-month price-to-earnings of 11.08X, higher than the industry average of 9.12X, reflecting investor confidence. However, it currently carries a Value Score of A.

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Shares of CNO Financial, MetLife and Radian Group are currently trading at a price-to-earnings value of 11.15X, 8.19 and 7.21X, respectively, in the past year.

PFG’s Encouraging Growth ProjectionThe Zacks Consensus Estimate for Principal Financial’s 2026 earnings per share (EPS) indicates a year-over-year increase of 13.3%. The consensus estimate for revenues is pegged at $16.38 billion, implying a year-over-year improvement of 2%.

The consensus estimate for 2027 EPS and revenues indicates an increase of 9.1% and 7.3%, respectively, from the corresponding 2026 estimates.

The expected long-term earnings growth is pegged at 10.7%.

Optimistic Analyst Sentiment on PFGFour analysts covering the stock have raised estimates for 2026, with no downward revisions, while three out of four analysts have increased estimates for 2027 over the past 60 days. The Zacks Consensus Estimate for 2026 and 2027 has moved 0.6% and 0.5% north, respectively, over the same time period.

PFG’s Key TailwindsPrincipal Financial continues to benefit from its strength and leadership in retirement and long-term savings, group benefits and protection in the United States and retirement and long-term savings in Latin America and Asia. Continued growth in fee, spread, and risk businesses boosts the company’s long-term prospects. The company leverages a favorable market position in the retirement industry and remains optimistic about the momentum across retirement platforms. PFG estimates solid revenue growth and margin expansion across all its segments over the long term.

Principal Financial’s assets under management (AUM) are driven by solid results across its three asset management and asset accumulation segments. Total company-managed AUM was $770 billion at the end of the first quarter of 2026, increasing 7% year over year. Principal Financial’s record investment sales, strong international net inflows, expanding private market strategies, extensive distribution footprint and active ETFs continue to support AUM growth.

The Specialty Benefits Insurance business should continue to gain from record sales, strong retention, improved dental pricing, solid disability performance and better group life results. Lower loss ratios and expanding margins are expected to support underwriting profitability through 2026.

Management utilizes a significant portion of its operating earnings for mergers and acquisitions and intends to continue doing so. Acquisitions, such as MetLife's Afore business, Internos and RobustWealth, have helped the company expand its fee-based businesses and global footprint. Integration of the  Wells Fargo Institutional Retirement and Trust business, along with strategic investment and initiatives, has expanded Principal Financial’s retirement offerings. Principal Financial looks forward to further leveraging the relationship to capitalize on its global retirement and asset management expertise through the partnership.

PFG boasts a strong capital position, supported by sufficient cash generation and liquidity. The company ended the first quarter of 2026 with $1.45 billion of excess and available capital. For 2026, PFG remains well-positioned to deliver on its enterprise long-term financial targets, with 9-12% growth in EPS and 75-85% free capital flow conversion. The robust capital position also supports disciplined capital deployment. The company returned $375 million to shareholders in the first quarter, including $200 million through share repurchases.

Risks for PFGPFG’s expenses have been increasing due to a rise in benefits, claims and settlement expenses, as well as operating expenses, weighing on margin expansion.

Principal Financial has been growing inorganically through acquisitions, increasing its debt obligation risks associated with successful integration.

Final Take on PFGPrincipal Financial should benefit from robust retirement business growth, fee-based revenue sources, growth in specialty benefits, strategic buyouts, and a strong capital position. However, escalating costs and dilution from acquisitions are concerns.

The board raised the second-quarter dividend by 8% to 82 cents per share, and the stock offers a dividend yield of 3%, above the industry average of 2.5%.

Coupled with the AUM growth, impressive dividend history, optimistic analyst sentiment, and favorable growth projections, PFG should continue to benefit over the long term. The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.