Ameriprise Hits New 52-Week High - Analyst Blog


Shares of Ameriprise Financial, Inc . ( AMP ) hit a new 52-week high, touching $78.25 almost at the end of the trading session on May 10, 2013. The closing price of this financial holding company represents a solid year-to-date return of 21.5%. The average trading volume over the last 3 months was 1.5 million shares.

Despite hitting its 52-week high, this Zacks Rank #2 (Buy) stock has plenty of upside left given its strong estimate revisions over the last 60 days and expected year-over-year earnings growth of 18.0% for 2013.

Growth Drivers

Impressive first-quarter 2013 results - including an earnings surprise of 1.27% - and a 16% hike in its quarterly cash dividend have been the primary growth drivers.

On Apr 22, 2013, Ameriprise reported first-quarter operating earnings of $1.59 per share, marginally surpassing the Zacks Consensus Estimate of $1.57. This also rose 9.7% from the year-ago earnings of $1.45. Better-than-expected results were primarily driven by top-line improvement, partially offset by a rise in operating expenses.

Moreover, the company has delivered positive earnings surprises in the 3 of the last 4 quarters with an average beat of 1.0%.

Estimate Revisions Show Potency

Over the last 60 days, 6 out of 9 estimates for 2013 have been revised upward, lifting the Zacks Consensus Estimate by 0.9% to $6.60 per share. For 2014, 5 out of 9 estimates moved higher over the same time frame, helping the Zacks Consensus Estimate advance 0.5% to $7.65 per share.   

Other stocks that are also worth considering include AllianceBernstein Holding L.P. ( AB ), Invesco Ltd. ( IVZ ) and Waddell & Reed Financial Inc. ( WDR ). All these carry a Zacks Rank #1 (Strong Buy).

ALLIANCEBERNSTN (AB): Free Stock Analysis Report

AMERIPRISE FINL (AMP): Free Stock Analysis Report

INVESCO LTD (IVZ): Free Stock Analysis Report

WADDELL&REED -A (WDR): Free Stock Analysis Report

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Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Business , Stocks

Referenced Stocks: AB , AMP , IVZ , WDR

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