Ameriprise Financial, Inc.

New York Stock Exchange
Back to all articles
Bullish +68

Is Ameriprise Financial (AMP) Stock Undervalued Right Now? - Yahoo Finance

AI-generated analysis

📊 Ameriprise Financial (AMP) holds a Zacks Rank of #2, indicating a "Buy" rating based on earnings estimates and revisions.

✅ The stock receives an "A" grade in the Value category within the Style Scores system developed by Zacks.

💰 AMP's Forward P/E ratio is 12.26, which is lower than the industry average of 12.69.

📉 Over the past 52 weeks, AMP's Forward P/E has ranged between 10.72 and 15.63 with a median of 13.43.

🏷️ The stock has a Price-to-Sales (P/S) ratio of 2.21 compared to an industry average of 2.64.

💵 Revenue is often seen as a truer performance indicator because it cannot be easily manipulated by management.

💸 AMP's Price-to-Cash-Flow (P/CF) ratio stands at 15.60, significantly below the industry average of 37.62.

📈 The P/CF ratio has fluctuated between 14.74 and 23.08 over the last year with a median of 17.06.

🔍 These valuation metrics collectively suggest that Ameriprise Financial may currently be undervalued by the market.

💼 Zacks Investment Research recommends downloading their free report featuring the top stocks for the next 30 days.

Bullish Signals
  • Ameriprise Financial (AMP) holds a Zacks Rank #2 (Buy), indicating strong earnings estimates and positive analyst sentiment.
  • The stock carries an A grade for Value, distinguishing it among the strongest value stocks on the market today.
  • AMP's Forward P/E ratio of 12.26 is below its industry average of 12.69, suggesting the stock is attractively valued relative to peers.
  • The company's Price-to-Sales ratio of 2.21 is lower than the industry average of 2.64, further highlighting its undervalued status.
  • AMP's P/CF ratio of 15.60 compares favorably to the industry average of 37.62, reflecting an impressive cash flow outlook relative to peers.
  • Historical analysis shows AMP's Forward P/E has ranged between 10.72 and 15.63 over the past 52 weeks, with a median of 13.43, while its current level suggests a potentially attractive entry point.
Risk Factors
Full Analysis
Ameriprise Financial, Inc. (AMP) is highlighted as a potential value stock investment opportunity based on the Zacks Rank system and Style Scores methodology. The article notes that AMP currently holds a Zacks Rank of #2, which signifies a Buy rating, combined with an 'A' grade in the Value category. This combination suggests that while the company is undervalued relative to its peers, it also has strong earnings growth potential supported by positive estimate revisions. Specific valuation metrics support the assessment that AMP is attractively priced at this time. The stock's Forward P/E ratio stands at 12.26, which is lower than its industry average of 12.69 and below the median historical Forward P/E of 13.43 over the past year. Additionally, Ameriprise trades at a Price-to-Sales (P/S) ratio of 2.21 compared to an industry average of 2.64, indicating a potentially lower valuation relative to its sales revenue. The analysis further emphasizes the company's impressive cash outlook using the Price-to-Cash-Flow (P/CF) ratio. AMP currently has a P/CF of 15.60, significantly below the industry average of 37.62 and its own 52-week median of 17.06. Historical data shows the metric ranged from 14.74 to 23.08 over the past year, with the current level positioned near the lower end of that range. Zacks Investment Research concludes that when these undervaluation metrics are combined with a strong earnings outlook, AMP presents itself as an impressive value stock in its current market environment.