Are Investors Undervaluing Ameriprise Financial Services (AMP) Right Now?
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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is Ameriprise Financial Services (AMP). AMP is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 10.80, which compares to its industry's average of 13.66. AMP's Forward P/E has been as high as 10.81 and as low as 4.69, with a median of 9.02, all within the past year.
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 1.98. This compares to its industry's average P/S of 2.94.
Finally, our model also underscores that AMP has a P/CF ratio of 12.37. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 36.66. AMP's P/CF has been as high as 12.37 and as low as 3.11, with a median of 7.38, all within the past year.
These are just a handful of the figures considered in Ameriprise Financial Services's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that AMP is an impressive value stock right now.
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Ameriprise Financial, Inc. (AMP) : Free Stock Analysis Report
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