Back to top

Image: Bigstock

Ameriprise Financial Enters Overbought Territory: Is A Drop Coming?

Read MoreHide Full Article

Ameriprise Financial, Inc. (AMP - Free Report) has moved higher as of late, but there could definitely be trouble on the horizon for this company. That is because AMP is now in overbought territory with an RSI value of 70.35.

What is RSI?

RSI stands for ‘Relative Strength Index’ and it is a popular indicator used by technically focused investors. It compares the average of gains in days that closed up to the average of losses in days that closed down; readings above 70 suggest an asset is overbought, while an RSI below 30 suggests undervalued conditions are present.

Other Factors

Yet AMP’s high RSI value isn’t the only reason for investors to be concerned, as there has been some decidedly negative earnings estimate revisions Ameriprise Financial’s stock as of late. This is especially true when investors dive into some of these revisions in order to get a better picture of AMP’s prospects for the near term.

Over the past one month, investors have witnessed 1 earnings estimate revision lower compared to none higher for the current year. The consensus estimate for AMP’s has also been on a downward trend over the same time period too, as the estimates have fallen 2.2% over the last two months.

If this wasn’t enough, Ameriprise Financial also has a Zacks Rank #4 (Sell)which puts it into unfortunate company among its peers. So, given all of these factors, investors may want to consider exiting this stock now before it falls back to Earth. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Is Your Investment Advisor Fumbling Your Financial Future?

See how you can more effectively safeguard your retirement with a new Special Report, “4 Warning Signs Your Investment Advisor Might Be Sabotaging Your Financial Future.”

Click to get it free >>




In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


Ameriprise Financial, Inc. (AMP) - free report >>

More from Zacks Tale of the Tape

You May Like