On March 24, 2014, we issued an updated research report on
Ameriprise Financial, Inc.
). The company reported better-than-expected fourth-quarter 2013
results on Feb 4. A rise in both assets under management (AUM)
and assets under administration continued to drive the company's
Adjusted earnings not only surpassed the Zacks Consensus Estimate
but also increased on a year-over-year basis.
Ameriprise remains an attractive asset for yield-seeking
investors due to its strong capital deployment activities. In
April 2013, the company raised its quarterly cash dividend by
15.6%. This was the sixth dividend hike for the company since
A well-diversified portfolio and strong balance sheet position
remain strengths for Ameriprise. Moreover, we believe that the
company will continue to restructure its business operations by
focusing on core business in order to remain profitable.
The Zacks Consensus Estimate for 2014 advanced slightly to $8.06
per share over the last 60 days. Moreover, for 2015, the Zacks
Consensus Estimate rose marginally to $9.05 per share over the
same time period.
However, Ameriprise's mounting operating expenses is a concern.
Going forward, increasing advertising costs will keep expenses
high. Further, stiff competition and continued outflows from the
company's Asset Management segment will weigh on top-line growth.
Ameriprise now has a Zacks Rank #3 (Hold).
Stocks That Warrant a Look
Some better-ranked investment managers include
Fortress Investment Group LLC
Calamos Asset Management Inc.
). All these stocks carry a Zacks Rank #1 (Strong Buy).
AMERIPRISE FINL (AMP): Free Stock Analysis
CALAMOS ASSET-A (CLMS): Free Stock Analysis
FORTRESS INVEST (FIG): Free Stock Analysis
LAZARD LTD (LAZ): Free Stock Analysis Report
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