Back to top

Analyst Blog

In an effort to keep pace with the growing technology standards of the industry, Ameriprise Financial Inc. (AMP - Analyst Report) re-signed a multi-year deal with technology giant International Business Machines Corporation (IBM - Analyst Report). The deal will allow the latter to continue its six-year practice of helping Ameriprise combine different IT systems with diverse financial products and applications. Further, it will considerably improve the core parts of the company's technology infrastructure – midrange, mainframe, storage and network services.

IBM manages the Ameriprise PeopleSoft applications, which include application and infrastructure tiers for its human resource, financial management, supply chain, and customer-relationship management tasks, through the IBM SmartCloud – the cloud computing products and solutions from IBM. Further, the technology giant is responsible for maintaining Ameriprise’s technology infrastructure standards at par or ahead of the rapidly developing industry.

Ameriprise believes that re-inking of the deal will help it realize its increasing information technology and business requirements, since IBM has a strong expertise and world-class service potential. Ameriprise expects IBM’s diversified product and service portfolio to be beneficial to its clients, advisors, employees as well as shareholders.

We believe that Ameriprise’s deal with the technology behemoth will help it continue operating much faster and in an uncomplicated way. The deal is also expected to positively impact the company’s financials by lowering operating expenses, amidst a sluggish macroeconomic environment.

To keep up with the economic instability, many firms are adopting expense management measures. Recently, State Street Corporation (STT - Analyst Report) announced that it is striving hard to timely complete its Information Technology Transformation program by 2014. This program is designed to rationalize the company’s technology infrastructure and generate around $600 million in pre-tax savings by 2015.

Ameriprise retains a Zacks #3 Rank, which translates into a short-term Hold rating. Considering the fundamentals, we also maintain a long-term ‘Neutral’ recommendation on the stock.

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%