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Are Investors Undervaluing Ameriprise Financial (AMP) Right Now?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is Ameriprise Financial (AMP - Free Report) . AMP is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 12.26, while its industry has an average P/E of 13.77. Over the last 12 months, AMP's Forward P/E has been as high as 15.63 and as low as 10.72, with a median of 13.43.
AMP is also sporting a PEG ratio of 0.98. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. AMP's industry has an average PEG of 1.01 right now. AMP's PEG has been as high as 1.96 and as low as 0.73, with a median of 1.04, all within the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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 2.22. This compares to its industry's average P/S of 3.
Finally, our model also underscores that AMP has a P/CF ratio of 15.60. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 34. Within the past 12 months, AMP's P/CF has been as high as 23.08 and as low as 14.74, with a median of 17.06.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Ameriprise Financial is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, AMP feels like a great value stock at the moment.
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Are Investors Undervaluing Ameriprise Financial (AMP) Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is Ameriprise Financial (AMP - Free Report) . AMP is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 12.26, while its industry has an average P/E of 13.77. Over the last 12 months, AMP's Forward P/E has been as high as 15.63 and as low as 10.72, with a median of 13.43.
AMP is also sporting a PEG ratio of 0.98. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. AMP's industry has an average PEG of 1.01 right now. AMP's PEG has been as high as 1.96 and as low as 0.73, with a median of 1.04, all within the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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 2.22. This compares to its industry's average P/S of 3.
Finally, our model also underscores that AMP has a P/CF ratio of 15.60. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 34. Within the past 12 months, AMP's P/CF has been as high as 23.08 and as low as 14.74, with a median of 17.06.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Ameriprise Financial is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, AMP feels like a great value stock at the moment.