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Ameriprise Financial, Inc. (AMP) Soars to 52-Week High, Time to Cash Out?
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Shares of Ameriprise Financial Services (AMP - Free Report) have been strong performers lately, with the stock up 6.2% over the past month. The stock hit a new 52-week high of $438 in the previous session. Ameriprise Financial Services has gained 14.8% since the start of the year compared to the 7.8% move for the Zacks Finance sector and the 11% return for the Zacks Financial - Investment Management industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on January 24, 2024, Ameriprise reported EPS of $7.75 versus consensus estimate of $7.67 while it beat the consensus revenue estimate by 3.1%.
For the current fiscal year, Ameriprise is expected to post earnings of $34.20 per share on $16.79 billion in revenues. This represents a 12.28% change in EPS on an 8.83% change in revenues. For the next fiscal year, the company is expected to earn $36.95 per share on $17.58 billion in revenues. This represents a year-over-year change of 8.05% and 4.7%, respectively.
Valuation Metrics
Ameriprise may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Ameriprise has a Value Score of B. The stock's Growth and Momentum Scores are D and A, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 12.8X current fiscal year EPS estimates, which is a premium to the peer industry average of 11.3X. On a trailing cash flow basis, the stock currently trades at 14.1X versus its peer group's average of 9.9X. Additionally, the stock has a PEG ratio of 0.81. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Ameriprise currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Ameriprise passes the test. Thus, it seems as though Ameriprise shares could have a bit more room to run in the near term.
How Does AMP Stack Up to the Competition?
Shares of AMP have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is BrightSphere Investment Group Inc. (BSIG - Free Report) . BSIG has a Zacks Rank of # 2 (Buy) and a Value Score of A, a Growth Score of A, and a Momentum Score of C.
Earnings were strong last quarter. BrightSphere Investment Group Inc. beat our consensus estimate by 32.76%, and for the current fiscal year, BSIG is expected to post earnings of $2.02 per share on revenue of $452.91 million.
Shares of BrightSphere Investment Group Inc. have gained 1.2% over the past month, and currently trade at a forward P/E of 11.27X and a P/CF of 10.16X.
The Financial - Investment Management industry is in the top 10% of all the industries we have in our universe, so it looks like there are some nice tailwinds for AMP and BSIG, even beyond their own solid fundamental situation.
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Ameriprise Financial, Inc. (AMP) Soars to 52-Week High, Time to Cash Out?
Shares of Ameriprise Financial Services (AMP - Free Report) have been strong performers lately, with the stock up 6.2% over the past month. The stock hit a new 52-week high of $438 in the previous session. Ameriprise Financial Services has gained 14.8% since the start of the year compared to the 7.8% move for the Zacks Finance sector and the 11% return for the Zacks Financial - Investment Management industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on January 24, 2024, Ameriprise reported EPS of $7.75 versus consensus estimate of $7.67 while it beat the consensus revenue estimate by 3.1%.
For the current fiscal year, Ameriprise is expected to post earnings of $34.20 per share on $16.79 billion in revenues. This represents a 12.28% change in EPS on an 8.83% change in revenues. For the next fiscal year, the company is expected to earn $36.95 per share on $17.58 billion in revenues. This represents a year-over-year change of 8.05% and 4.7%, respectively.
Valuation Metrics
Ameriprise may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Ameriprise has a Value Score of B. The stock's Growth and Momentum Scores are D and A, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 12.8X current fiscal year EPS estimates, which is a premium to the peer industry average of 11.3X. On a trailing cash flow basis, the stock currently trades at 14.1X versus its peer group's average of 9.9X. Additionally, the stock has a PEG ratio of 0.81. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Ameriprise currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Ameriprise passes the test. Thus, it seems as though Ameriprise shares could have a bit more room to run in the near term.
How Does AMP Stack Up to the Competition?
Shares of AMP have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is BrightSphere Investment Group Inc. (BSIG - Free Report) . BSIG has a Zacks Rank of # 2 (Buy) and a Value Score of A, a Growth Score of A, and a Momentum Score of C.
Earnings were strong last quarter. BrightSphere Investment Group Inc. beat our consensus estimate by 32.76%, and for the current fiscal year, BSIG is expected to post earnings of $2.02 per share on revenue of $452.91 million.
Shares of BrightSphere Investment Group Inc. have gained 1.2% over the past month, and currently trade at a forward P/E of 11.27X and a P/CF of 10.16X.
The Financial - Investment Management industry is in the top 10% of all the industries we have in our universe, so it looks like there are some nice tailwinds for AMP and BSIG, even beyond their own solid fundamental situation.