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Analyst Blog

Shares of Ameriprise Financial, Inc. (AMP - Analyst Report) hit a new 52-week high, touching $103.22 almost at the end of the trading session on Nov 8. However, the stock closed the session at $103.12, which reflects a solid year-to-date return of 61.9%. The trading volume for the session was 1.7 million shares compared to the 3-month average of 1.0 million.

Despite the strong price appreciation, this Zacks Rank #3 (Hold) investment manager has plenty of upside left, given its positive estimate revisions over the last 30 days and expected year-over-year earnings growth of 16.4% for 2013.

Growth Drivers

Ameriprise’s impressive price performance reflects solid third-quarter 2013 results which include a positive earnings surprise of 10.40%.

On Oct 29, Ameriprise declared third-quarter operating earnings of $1.91 per share, beating the Zacks Consensus Estimate of $1.73. On an operating basis, net revenue climbed 7% year over year to $2.7 billion. Moreover, total assets under management (AUM) and assets under administration were $735 million, rising 8% year over year.

Ameriprise’s efficient capital deployment activities in the form of share buybacks and regular dividend payouts continue to attract investors. The company’s cost-control measures and increased client activity are expected to drive growth, going forward.

Moreover, Ameriprise has delivered positive earnings surprises in the trailing 4 quarters with an average beat of 7.88%.

Estimate Revisions Show Potency

In the last 30 days, the Zacks Consensus Estimate for 2013 increased 2.6% to $6.99 per share. For 2014, the Zacks Consensus Estimate advanced 1.3% to $7.92 per share over the same time frame.

Better performing financial organizations include Artisan Partners Asset Management Inc. (APAM - Snapshot Report), Brookfield Asset Management Inc. (BAM - Snapshot Report) and GAMCO Investors, Inc. (GBL - Snapshot Report). All these stocks carry a Zacks Rank #1 (Strong Buy).

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