Strength Seen in Ameriprise (AMP): Can Its 3.8% Jump Turn into More Strength?
Ameriprise Financial Inc. (AMP) shares soared 3.8% in the last trading session to close at $297.71. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 19.3% loss over the past four weeks.
After stumbling significantly over the past few trading day, the trend reversed. Following the fall out of the collapse of two S&P 500 banks, the investors regained some confidence in the finance sector amid the steps taken by the regulators to avert a full-blown bank run. Moreover, inflation numbers came out as expected, which further reinforced investor optimism. These developments drove the AMP stock higher.
This financial services company is expected to post quarterly earnings of $7.11 per share in its upcoming report, which represents a year-over-year change of +18.9%. Revenues are expected to be $3.71 billion, up 3.3% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Ameriprise, the consensus EPS estimate for the quarter has been revised marginally higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on AMP going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Ameriprise belongs to the Zacks Financial - Investment Management industry. Another stock from the same industry, Focus Financial Partners Inc. (FOCS), closed the last trading session 1.1% higher at $51.50. Over the past month, FOCS has returned 1.8%.
Focus Financial Partners Inc.'s consensus EPS estimate for the upcoming report has changed +2% over the past month to $0.98. Compared to the company's year-ago EPS, this represents a change of -15.5%. Focus Financial Partners Inc. currently boasts a Zacks Rank of #3 (Hold).
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