Back to top

Analyst Blog

On Jun 25, 2013, we reiterated our long-term recommendation on Ameriprise Financial, Inc. (AMP - Analyst Report) at Neutral. Our decision rests on the company’s sound capital deployment activities and solid first-quarter 2013 earnings. However, we remain concerned about Ameriprise’s mounting expenses.

Why the Reiteration?

Ameriprise’s first-quarter operating earnings came in at $1.59 per share, marginally surpassing the Zacks Consensus Estimate of $1.57. Also, this improved 9.7% from the year-ago earnings of $1.45. Better-than-expected results were aided by top-line growth, partially offset by a rise in operating expenses. Further, assets under management and administration improved in the quarter.

Following the result release, the Zacks Consensus Estimate went up by 0.5% to $6.63 per share over the last 60 days. Moreover, for 2014, the Zacks Consensus Estimate went up by 0.7% to $7.70 per share over the same time frame. The company currently holds a Zacks Rank #2 (Buy).

In Apr 2013, Ameriprise hiked its quarterly cash dividend by 15.6% to 52 cents per share. Moreover, the board of directors approved a new share repurchase program worth an additional $2 billion for purchasing its common shares through 2014.

Ameriprise has grown inorganically and restructured its portfolio from time to time through acquisitions, sales and spin-offs. The company is expected to continue with its restructuring activities with an aim to remain profitable by focusing on its core businesses.

However, escalating expenses remain a major area of concern for Ameriprise as it may hamper its profitability. Moreover, the sluggish economic recovery and the existing low interest-rate environment are expected to keep Ameriprise’s financials under pressure in the near future.

Other Banks to Consider

Some other financial stocks worth considering include GAMCO Investors, Inc. (GBL - Snapshot Report), Noah Holdings Limited (NOAH - Snapshot Report) and Virtus Investment Partners, Inc. (VRTS - Snapshot Report). All these carry a Zacks Rank #1 (Strong Buy).

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
UTD THERAPE… UTHR 117.83 +28.51%
TRIQUINT SE… TQNT 20.67 +6.52%
RF MICRO DE… RFMD 12.47 +6.04%
VASCO DATA… VDSI 14.77 +4.68%
BANCO DO BR… BDORY 15.53 +3.95%