Analysts Continue to View Principal Financial Group (PFG) Cautiously as Sector Cycle Softens

Principal Financial Group (NASDAQ:PFG) is among the 9 Best Life Insurance Stocks to Buy Now.

Morgan Stanley increased its price objective for Principal Financial Group (NASDAQ:PFG) from $83 to $87 on November 17, 2025, while maintaining an Underweight rating, as reported by TheFly. The adjustment came after Q3 results and new insurance-sector models. The firm stated that the life insurance earnings were higher than share-price reactions suggested, while the property and liability market is likely to undergo a softening cycle by 2026.

Principal Financial Group, Inc. (NASDAQ:PFG)  offers an attractive long-term dividend growth potential with $1.8 trillion in assets under administration and a 16-year streak of dividend growth. The company expects 9-12% annual non-GAAP EPS growth, driven by strong Q3 2025 performance and cautious capital allocation. The management has expressed optimism in the $1.4-$1.7 billion capital return and full-year enterprise financial targets, which include $700 million to $1 billion in share repurchases.

Principal Financial Group, Inc. (NASDAQ:PFG), a financial services firm, has been in business for more than 145 years, employs close to 20,000 workers across 27 countries, and has extensive knowledge in 401(k)/403(b) administration, annuities, disability insurance, and retirement solutions. It continues to benefit from consistent growth in assets under management and a strong global clientele.

While we acknowledge the potential of PFG as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 10 High-Growth EV Stocks to Invest In and 13 Best Car Stocks to Buy in 2025.

Disclosure. None