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Is Ameriprise Financial Services (AMP) a Great Value Stock Right Now?

Zacks Equity Research

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One stock to keep an eye on is Ameriprise Financial Services (AMP). AMP is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 8.57, which compares to its industry's average of 12.85. Over the last 12 months, AMP's Forward P/E has been as high as 10.41 and as low as 4.69, with a median of 8.51.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. AMP has a P/S ratio of 1.44. This compares to its industry's average P/S of 1.88.

Finally, our model also underscores that AMP has a P/CF ratio of 5.05. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 17.67. Over the past year, AMP's P/CF has been as high as 11.37 and as low as 3.11, with a median of 9.57.

Value investors will likely look at more than just these metrics, but the above data helps show that Ameriprise Financial Services is likely undervalued currently. And when considering the strength of its earnings outlook, AMP sticks out at as one of the market's strongest value stocks.


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