Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

5 Reasons Why Ameriprise (AMP) Stock Is An Attractive Pick

By Zacks Investment ResearchStock MarketsSep 25, 2017 08:35AM ET
www.investing.com/analysis/5-reasons-why-ameriprise-amp-stock-is-an-attractive-pick-200215254
5 Reasons Why Ameriprise (AMP) Stock Is An Attractive Pick
By Zacks Investment Research   |  Sep 25, 2017 08:35AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

At the time when financial stocks are in the spotlight, adding a few to your investment portfolio will be a wise decision. Today we bring one such asset manager, Ameriprise Financial, Inc. (NYSE:AMP) for you to consider.

The company has grown meaningfully over the years organically and through acquisitions. Also, Ameriprise’s strength can be seen in several areas including consistent top-line growth, improving earnings performance and a strong balance sheet position.

Yet, continued outflows in the Asset Management segment and higher expense levels are major near-term concerns for Ameriprise. Despite these headwinds, this Zacks Rank #2 (Buy) stock seems like an attractive investment opportunity right now.

The Zacks Consensus Estimate increased 4% over the last 90 days for both 2017 and 2018 to $11.23 and 12.59, respectively. Further, shares of Ameriprise increased 28.8% so far this year, outperforming the industry’s gain of 21.6%.



Why Ameriprise is a Solid Pick?

Revenue Growth: Ameriprise remains focused on its organic growth strategy, depicted by its consistent efforts to keep pace with dynamic market needs through launch of new products. This strategy helped the company in witnessing a rise in total net revenues (GAAP basis) at a compound annual growth rateof 3.4% over the last five years (2012-2016).

Further, the company’s projected sales growth of 2.9% and 5.5% for 2017 and 2018 respectively,ensures continuation of the upward trend in revenues. Moreover, management projects 6-8% revenue growth over the longterm.

Earnings per Share Strength: Over the past three to five years, Ameriprise witnessed earnings per share (EPS) growth of 14% compared with 4.4% gain for the industry. Further, the company’s earnings are projected to grow 19.5% in 2017, higher than 13.1% predicted for the industry.

Steady Capital Deployment Actions: Ameriprise’s steady capital deployment plans are impressive. The company has been regularly increasing its dividends since 2010, with the last hike announced in April 2017. Further, the company has share buyback plan in place. Given the strong capital position and decent earnings growth, the company should be able to sustain its capital deployment activities, thus enhancing shareholder value.

Stock Seems Undervalued: Ameriprise has a Value Score of A. The Value Style Score condenses all valuation metrics into one actionable score that helps investors steer clear of ‘value traps’ and identify stocks that are truly trading at a discount. Our research shows that stocks with Style Scores of A or B, when combined with Zacks Rank #1 (Strong Buy) or #2, offer the best upside potential.

Solid Return on Equity (ROE): With an ROE of 26.54% compared to the industry average of 12.24%, Ameriprise appears to reinvest its cash more efficiently.

Other Stocks Worth a Look

Some other stocks worth considering in the same industry are America First Multifamily Investors, L.P. (NASDAQ:ATAX) , KKR & Co. L.P. (NYSE:KKR) and PennantPark Floating Rate Capital Ltd. (NASDAQ:PFLT) . All three stocks carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

America First Multifamily Investors has witnessed an upward earnings estimate revision of 16.7% for the current year, over the past 60 days. Also, its share price is up 13.9%, year to date.

KKR & Co earnings estimates have been revised 6.5% upward for the current year in the past 60 days. Also so far this year, its share price increased 28.2%.

PennantPark Floating Rate Capital recorded an upward earnings estimate revision of 5.5% for the current year in the past 60 days. Also, its share price has seen a 2% rise so far this year.

Looking for Stocks with Skyrocketing Upside?

Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.

Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.

See the pot trades we're targeting>>



AMERIPRISE FINANCIAL SERVICES, INC. (AMP): Free Stock Analysis Report

KKR & Co. L.P. (KKR): Free Stock Analysis Report

PennantPark Floating Rate Capital Ltd. (PFLT): Free Stock Analysis Report

America First Multifamily Investors, L.P. (ATAX): Free Stock Analysis Report

Original post
5 Reasons Why Ameriprise (AMP) Stock Is An Attractive Pick
 

Related Articles

Guy S. Ortmann, CMT
Trends Turn Positive By Guy S. Ortmann, CMT - Jul 30, 2021

McClellan OB/OS Oscillators Remain Neutral All the major equity indexes closed higher Thursday with positive internals on the NYSE and NASDAQ as trading volumes declined on both...

5 Reasons Why Ameriprise (AMP) Stock Is An Attractive Pick

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email