A lot as in in sport, momentum could be a highly effective drive in investing. Typically, shares which might be trending up are capable of proceed rising for an prolonged interval. Now, one FTSE 100 inventory I maintain in my ISA has a substantial amount of upward momentum at current. Right here’s the title of the corporate and a take a look at why I imagine the inventory has the potential to maintain rising.

A top-performing insurance coverage inventory

The Footsie firm in focus immediately is Prudential (LSE:PRU). It’s a well-established insurance coverage firm that’s centered on the high-growth markets of Asia and Africa.

This inventory has underperformed over the previous couple of years because of financial weak point in China. But not too long ago, it’s been making an unbelievable comeback.

During the last three months, it has risen about 17%. During the last six, it has climbed about 37%.

It nonetheless appears to be like undervalued

I imagine the upward development right here has loads of room to run. There are a couple of explanation why.

For starters, the inventory stays effectively under its highs. 4 years in the past, the share price was nearly 100% greater than it’s immediately.

Second, it nonetheless appears to be like actually low-cost immediately. At present, analysts count on Prudential to generate earnings per share (EPS) of $1.03 this yr and $1.18 subsequent yr so we’re a price-to-earnings (P/E) ratio of 11.7, falling to 10.2 utilizing the FY2026 EPS forecast.

It’s price highlighting the earnings development anticipated subsequent yr (round 15%). That’s first rate and it might assist to push the share price greater.

One issue serving to earnings development is share buybacks. Lately, Prudential has been shopping for again a load of its personal inventory (which means that administration views the inventory as low-cost).

Brokers are bullish

Third, current dealer exercise right here has been constructive (this could additionally assist to spice up a inventory). For instance, earlier this month, analysts at Deutsche Financial institution upgraded Prudential shares from Maintain to Purchase and raised their goal price from 900p to 1,000p (about 13% above the present share price).

Lengthy-term development potential

Lastly, the long-term potential right here is immense. In China, for instance, the life insurance coverage trade is forecast to develop at a compound annual development fee (CAGR) of 9% between 2024 and 2028, from $597bn to $893bn.

This market development – and development in different Asian nations reminiscent of Indonesia, Philippines, and Vietnam – ought to present robust tailwinds for the corporate. Given its publicity to those markets, the corporate is way extra scalable than most different FTSE insurers.

I’m bullish

Now, there’s no assure that the share price will proceed rising from right here, after all. Financial weak point throughout Asia is a threat that would derail my bull case.

One other threat is a market-wide pullback. This situation might see the inventory lose its momentum.

All issues thought of, nonetheless, I’m bullish on Prudential. I imagine it’s price contemplating as a long-term funding immediately.