We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Here's Why You Should to Buy Ameriprise (AMP) Stock Now
Read MoreHide Full Article
At the time when financial stocks are in the spotlight, adding a few to your investment portfolio will be a wise decision. Today we bring one such asset manager – Ameriprise Financial, Inc. (AMP - Free Report) – for you to consider.
The company has grown meaningfully over the years organically and through acquisitions. Also, Ameriprise’s strength can be seen in several areas including consistent top-line growth, improving earnings performance and a strong balance sheet position.
However, continued outflows in the Asset Management segment and elevated expenses are major near-term concerns for Ameriprise. Despite these headwinds, this Zacks Rank #2 (Buy) stock seems like an attractive investment opportunity right now as it has been witnessing solid upward estimate revisions.
The Zacks Consensus Estimate for the current year increased 2.2% over the last 60 days to $10.62. Estimates for 2018 rose 5% to $12.05 per share over the same time frame.
Further, shares of Ameriprise increased 33% over the past six months, outperforming the Zacks categorized Investment Management industry’s gain of 11.9%.
Why Ameriprise is an Attractive Choice?
Revenue Growth: Ameriprise remains focused on its organic growth strategy, depicted by the consistent efforts to keep pace with dynamic market needs through launch of new products. This strategy helped the company in witnessing a rise in total net revenue (GAAP basis) at a CAGR of 3.4% over the last five years (2012–2016).
Further, the company’s projected sales growth (F1/F0) of 6.4% ensures continuation of the upward trend in revenues.
Earnings Per Share Strength: Over the past three to five years, Ameriprise witnessed earnings per share (EPS) growth of 15.9% compared with 10.1% gain for the industry. Further, the company’s earnings are projected to grow 13.1% in 2017, significantly higher than 8.1% predicted for the industry.
Valuation Looks Reasonable: Ameriprise has a Value Score of ‘B.’ The Value Style Score condenses all valuation metrics into one actionable score that helps investors steer clear of ‘value traps’ and identify stocks that are truly trading at a discount. Our research shows that stocks with Style Scores of ‘A’ or ‘B,’ when combined with Zacks Rank #1 (Strong Buy) or #2, offer the best upside potential.
Solid Return on Equity (ROE): With an ROE of 23.61% compared to the industry average of 12.50%, Ameriprise appears to reinvest its cash more efficiently.
Lazard has witnessed an upward earnings estimate revision of 2.2% for the current year, over the past 60 days. Also, its share price is up 4.7%, year to date.
Apollo Global Management earnings estimates have been revised 11.9% upward for the current year in the past 60 days. Also so far this year, its share price increased 17.5%.
OM Asset Management recorded an upward earnings estimate revision of 3.5% for the current year in the past 60 days. Also, its share price has seen a 2.2% rise so far this year.
8 Stocks with Huge Profit Potential
Just released: Driverless Cars: Your Roadmap to Mega-Profits Today. In this latest Special Report, Zacks’ Aggressive Growth Strategist Brian Bolan explores a full-blown technological breakthrough in the making – autonomous cars. He also spotlights 8 stocks with tremendous gain potential to feed off this phenomenon. Click to see the stocks right now >>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Here's Why You Should to Buy Ameriprise (AMP) Stock Now
At the time when financial stocks are in the spotlight, adding a few to your investment portfolio will be a wise decision. Today we bring one such asset manager – Ameriprise Financial, Inc. (AMP - Free Report) – for you to consider.
The company has grown meaningfully over the years organically and through acquisitions. Also, Ameriprise’s strength can be seen in several areas including consistent top-line growth, improving earnings performance and a strong balance sheet position.
However, continued outflows in the Asset Management segment and elevated expenses are major near-term concerns for Ameriprise. Despite these headwinds, this Zacks Rank #2 (Buy) stock seems like an attractive investment opportunity right now as it has been witnessing solid upward estimate revisions.
The Zacks Consensus Estimate for the current year increased 2.2% over the last 60 days to $10.62. Estimates for 2018 rose 5% to $12.05 per share over the same time frame.
Further, shares of Ameriprise increased 33% over the past six months, outperforming the Zacks categorized Investment Management industry’s gain of 11.9%.
Why Ameriprise is an Attractive Choice?
Revenue Growth: Ameriprise remains focused on its organic growth strategy, depicted by the consistent efforts to keep pace with dynamic market needs through launch of new products. This strategy helped the company in witnessing a rise in total net revenue (GAAP basis) at a CAGR of 3.4% over the last five years (2012–2016).
Further, the company’s projected sales growth (F1/F0) of 6.4% ensures continuation of the upward trend in revenues.
Earnings Per Share Strength: Over the past three to five years, Ameriprise witnessed earnings per share (EPS) growth of 15.9% compared with 10.1% gain for the industry. Further, the company’s earnings are projected to grow 13.1% in 2017, significantly higher than 8.1% predicted for the industry.
Valuation Looks Reasonable: Ameriprise has a Value Score of ‘B.’ The Value Style Score condenses all valuation metrics into one actionable score that helps investors steer clear of ‘value traps’ and identify stocks that are truly trading at a discount. Our research shows that stocks with Style Scores of ‘A’ or ‘B,’ when combined with Zacks Rank #1 (Strong Buy) or #2, offer the best upside potential.
Solid Return on Equity (ROE): With an ROE of 23.61% compared to the industry average of 12.50%, Ameriprise appears to reinvest its cash more efficiently.
Other Stocks Worth a Look
Some other favorably ranked stocks in the same industry include Lazard Ltd (LAZ - Free Report) , Apollo Global Management, LLC (APO - Free Report) and OM Asset Management plc . All three stocks carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Lazard has witnessed an upward earnings estimate revision of 2.2% for the current year, over the past 60 days. Also, its share price is up 4.7%, year to date.
Apollo Global Management earnings estimates have been revised 11.9% upward for the current year in the past 60 days. Also so far this year, its share price increased 17.5%.
OM Asset Management recorded an upward earnings estimate revision of 3.5% for the current year in the past 60 days. Also, its share price has seen a 2.2% rise so far this year.
8 Stocks with Huge Profit Potential
Just released: Driverless Cars: Your Roadmap to Mega-Profits Today. In this latest Special Report, Zacks’ Aggressive Growth Strategist Brian Bolan explores a full-blown technological breakthrough in the making – autonomous cars. He also spotlights 8 stocks with tremendous gain potential to feed off this phenomenon. Click to see the stocks right now >>