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Why it's the Best Time to Hold onto Ameriprise (AMP) Stock?
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On Dec 26, we issued an updated report on Ameriprise Financial, Inc. (AMP - Free Report) . Supported by a solid balance sheet and liquidity position, the company remains on track for organic as well as inorganic growth. Moreover, its efficient capital deployment activities should continue enhancing shareholder value.
Ameriprise’s shares have gained 54.4% in the past year, outperforming 32.5% growth for the industry it belongs to.
However, consistently increasing expenses and elevated levels of outflows in the Asset Management segment remain causes for concern.
The company’s Zacks Consensus Estimate for current-year earnings has also remained stable over the last 30 days. Thus, the stock currently carries a Zacks Rank #3 (Hold).
Looking at the fundamentals, the company’s revenues have witnessed a CAGR of 3.4% over the last five years (2012–2016). In order to face competition and keep pace with the changing market needs, Ameriprise has been modifying its product and services consistently. Moreover, its efforts to launch new products should further support top-line growth in the future.
The company’s inorganic growth story also remains impressive. From time to time, it has restructured its portfolio through acquisitions, sales and spin-offs. In fact, with an aim to remain profitable, the company is likely to continue with its restructuring initiatives.
However, over the last five years (2012–2016), the company’s expenses have witnessed a CAGR of 3.0%. Elevated costs are expected to hurt bottom-line growth in the quarters ahead.
Further, elevated levels of outflows in the Asset Management segment, which is one of the major sources of the company’s revenues remains a cause for concern. Management expects outflows to continue in the coming quarters (albeit at a slower pace), which is likely to affect the segment’s performance.
Stocks to Consider
Some better-ranked stocks in the same space are Legg Mason, Inc. , Federated Investors, Inc. and Artisan Partners Asset Management Inc. (APAM - Free Report) .
Legg Mason’s earnings estimates for the current fiscal year have been revised 3.6% upward over the last 60 days. Also, its shares have gained 39.5% in a year’s time. The stock currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Federated Investors’ current-year earnings estimates have been revised 3.4% upward over the last 60 days. Its shares have surged 31.2% in the last year. It has a Zacks Rank #2 (Buy).
Artisan Partners also carries a Zacks Rank of 2. Its current-year earnings estimates have been revised 1.7% upward over the last 60 days. Its share price has increased 34.7% in the last year.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
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Why it's the Best Time to Hold onto Ameriprise (AMP) Stock?
On Dec 26, we issued an updated report on Ameriprise Financial, Inc. (AMP - Free Report) . Supported by a solid balance sheet and liquidity position, the company remains on track for organic as well as inorganic growth. Moreover, its efficient capital deployment activities should continue enhancing shareholder value.
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Ameriprise’s shares have gained 54.4% in the past year, outperforming 32.5% growth for the industry it belongs to.
However, consistently increasing expenses and elevated levels of outflows in the Asset Management segment remain causes for concern.
The company’s Zacks Consensus Estimate for current-year earnings has also remained stable over the last 30 days. Thus, the stock currently carries a Zacks Rank #3 (Hold).
Looking at the fundamentals, the company’s revenues have witnessed a CAGR of 3.4% over the last five years (2012–2016). In order to face competition and keep pace with the changing market needs, Ameriprise has been modifying its product and services consistently. Moreover, its efforts to launch new products should further support top-line growth in the future.
The company’s inorganic growth story also remains impressive. From time to time, it has restructured its portfolio through acquisitions, sales and spin-offs. In fact, with an aim to remain profitable, the company is likely to continue with its restructuring initiatives.
However, over the last five years (2012–2016), the company’s expenses have witnessed a CAGR of 3.0%. Elevated costs are expected to hurt bottom-line growth in the quarters ahead.
Further, elevated levels of outflows in the Asset Management segment, which is one of the major sources of the company’s revenues remains a cause for concern. Management expects outflows to continue in the coming quarters (albeit at a slower pace), which is likely to affect the segment’s performance.
Stocks to Consider
Some better-ranked stocks in the same space are Legg Mason, Inc. , Federated Investors, Inc. and Artisan Partners Asset Management Inc. (APAM - Free Report) .
Legg Mason’s earnings estimates for the current fiscal year have been revised 3.6% upward over the last 60 days. Also, its shares have gained 39.5% in a year’s time. The stock currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Federated Investors’ current-year earnings estimates have been revised 3.4% upward over the last 60 days. Its shares have surged 31.2% in the last year. It has a Zacks Rank #2 (Buy).
Artisan Partners also carries a Zacks Rank of 2. Its current-year earnings estimates have been revised 1.7% upward over the last 60 days. Its share price has increased 34.7% in the last year.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Click for details >>