Last updated: May 12, '19

Are you looking for the analysis of AMERIPRISE FINANCIAL SERVICES, INC. (AMP) stock? Are you wondering what the bulls and the bears say about it?

If so, you came to the right place. In this stock guide, we will share with you 6 reasons to buy and 5 reasons to sell AMP stock. You’ll get a perspective on what the bulls and the bears say about it.

The analysis below may be also helpful to you if you have any of the following questions about AMP stock:

  • Is AMP a buy or a sell?
  • Should I sell or hold AMP stock today?
  • Is AMP a good buy / investment?
  • What are AMP analyst opinions, recommendations and ratings?

Let’s start with the bull case. Here are the reasons to buy AMP stock:

1. The acquisition of Columbia Asset Management doubled Ameriprise's assets under management and administration, further increasing the size and scale of its asset management operations.

2. The advisory and wealth management unit offers quality service and product expertise to its affluent clientele and has one of the best retention rates in the industry.

3. A two-pillar model allows Ameriprise to enjoy attractive returns from its asset management business and stable cash flows from its insurance operations.

4. AMP forward dividend yield is 2.81%, higher than the industry (0.43%) and sector (0.91%) forward dividend yields. See AMP forward dividend chart.

5. AMP forward P/E ratio is 8.07, and it’s low compared to its industry peers’ P/E ratios. See AMP forward P/E ratio chart.

6. AMP average analyst rating is Buy. See AMP analyst rating chart.

Now that you understand the bull case, let’s look at the reasons to sell AMP stock (i.e., the bear case):

1. The life insurance business is a commodity business that suffers from poor industry dynamics.

2. The company's investment portfolio has a larger-than-average commitment to mortgage-backed and asset-backed securities.

3. Ameriprise's wide use of independent advisors means the company has no direct control over customers, making it vulnerable to competitors.

4. AMP stock price ($144.56) is close to the 52-week high ($148.65). Perhaps now is a good time to sell? See AMP price chart.

5. AMP quarterly revenue growth was 0.40%, lower than the industry and sector average revenue growth (4.06% and 5.69%, respectively). See AMP revenue growth chart.

Now let's look at the key statistics for AMP:

Metrics AMP
Price $146.35
Average Price Target / Upside $148.10 / 1.19%
Average Analyst Rating Buy
Industry Asset Management
Sector Financial Services
Number of Employees 14,000
Market Cap $19.08B
Forward P/E Ratio 7.84
Price/Book Ratio 1.48
PEG 0.46
Revenue (TTM) $12.89B
YoY Quarterly Revenue Growth -1%
Profit Margin 14.73%

What are your thoughts on AMP?

If you liked this analysis, check out Buy or Sell Stock Guides for other stocks.

Comments (0)expand_more