Ameriprise Reaches 52-Week High
Shares of Ameriprise Financial, Inc. (AMP) hit a new 52-week high, touching $103.22 almost at the end of the trading session on Nov 8. However, the stock closed the session at $103.12, which reflects a solid year-to-date return of 61.9%. The trading volume for the session was 1.7 million shares compared to the 3-month average of 1.0 million.
Despite the strong price appreciation, this Zacks Rank #3 (Hold) investment manager has plenty of upside left, given its positive estimate revisions over the last 30 days and expected year-over-year earnings growth of 16.4% for 2013.
Growth Drivers
Ameriprise’s impressive price performance reflects solid third-quarter 2013 results which include a positive earnings surprise of 10.40%.
On Oct 29, Ameriprise declared third-quarter operating earnings of $1.91 per share, beating the Zacks Consensus Estimate of $1.73. On an operating basis, net revenue climbed 7% year over year to $2.7 billion. Moreover, total assets under management (:AUM) and assets under administration were $735 million, rising 8% year over year.
Ameriprise’s efficient capital deployment activities in the form of share buybacks and regular dividend payouts continue to attract investors. The company’s cost-control measures and increased client activity are expected to drive growth, going forward.
Moreover, Ameriprise has delivered positive earnings surprises in the trailing 4 quarters with an average beat of 7.88%.
Estimate Revisions Show Potency
In the last 30 days, the Zacks Consensus Estimate for 2013 increased 2.6% to $6.99 per share. For 2014, the Zacks Consensus Estimate advanced 1.3% to $7.92 per share over the same time frame.
Better performing financial organizations include Artisan Partners Asset Management Inc. (APAM), Brookfield Asset Management Inc. (BAM) and GAMCO Investors, Inc. (GBL). All these stocks carry a Zacks Rank #1 (Strong Buy).
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