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Is Ameriprise Financial Services (AMP) Stock Undervalued Right Now?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

Ameriprise Financial Services (AMP - Free Report) is a stock many investors are watching right now. AMP is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with P/E ratio of 10.86 right now. For comparison, its industry sports an average P/E of 13.48. AMP's Forward P/E has been as high as 11.20 and as low as 4.69, with a median of 9.04, all within the past year.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. AMP has a P/S ratio of 2.16. This compares to its industry's average P/S of 3.14.

Finally, investors should note that AMP has a P/CF ratio of 15.27. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. AMP's P/CF compares to its industry's average P/CF of 36.66. Within the past 12 months, AMP's P/CF has been as high as 15.30 and as low as 3.11, with a median of 7.38.

These are only a few of the key metrics included in Ameriprise Financial Services's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, AMP looks like an impressive value stock at the moment.


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