Des Moines, Iowa-based Principal Financial Group, Inc. (PFG), is a leading global financial services provider that offers a wide range of financial products and services to individuals, corporations, and institutional clients. With a market cap of $17.9 billion, the company provides retirement solutions, life and health insurance, wellness programs, and investment and banking products.

Shares of this global financial services company have underperformed the broader market over the past year. PFG has gained 1.8% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 15.2%. In 2025, PFG stock is up 4.4%, compared to the SPX’s 10.2% rise on a YTD basis.

Narrowing the focus, PFG’s underperformance is also apparent compared to the Financial Select Sector SPDR Fund (XLF). The exchange-traded fund has gained about 20% over the past year. Moreover, the ETF’s 11.3% gains on a YTD basis outshine the stock’s single-digit returns over the same time frame.

On Jul. 28, PFG shares closed down marginally after reporting its Q2 results. Its adjusted EPS of $2.16 exceeded Wall Street expectations of $1.98. The company’s assets under management totaled $753 billion, which is included in assets under administration (AUA) of $1.7 trillion. 

For the current fiscal year, ending in December, analysts expect PFG’s EPS to grow 18.4% to $8.25 on a diluted basis. The company’s earnings surprise history is disappointing. It missed the consensus estimate in three of the last four quarters while beating the forecast on another occasion. 

Among the 15 analysts covering PFG stock, the consensus is a “Hold.” That’s based on four “Strong Buy” ratings, eight “Holds,” one “Moderate Sell,” and two “Strong Sells.”

The configuration has been consistent over the past three months. 

On Aug. 18, Morgan Stanley (MS) analyst Bob Huang kept an “Underweight” rating on PFG and raised the price target to $77.

The mean price target of $85.77 represents a 6.1% premium to PFG’s current price levels. The Street-high price target of $101 suggests an upside potential of 24.9%.