Technicals For Ameriprise Are Bullish

AMP is on an upswing

Ameriprise Financial (AMP – Analyst Report) just hit a new multiyear high at $55.06 after reporting a third quarter earnings surprise of 28% in late October. Estimates have since jumped higher, with the next-year estimate projecting 17% growth, providing some very nice upward momentum for this Zacks #1 rank stock.
AMP, through its subsidiaries, provides financial planning products and services in the United States. The company was founded in 1894 and has a market cap of $13.5 billion.
With the global economy showing signs of recovery and the stock market charging higher on strong earnings, Ameriprise’s business has been on the upswing. That dynamic showed up on October 28 when the company reported excellent third quarter results that once again beat expectations.
Third-Quarter Results
Revenue for the period was up 26% from last year to $2.4 billion. Earnings also looked great, coming in at $1.37, 28% ahead of the Zacks Consensus Estimate, where the company now has an average earnings surprise of 31% over the last four quarters.
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The strong results were driven by a huge increase in owned, managed and administered assets, up 48% from last year to $649 billion on its acquisition of Columbia Management and general equity appreciation.
Total client assets were also up, increasing 9% from last year to $313 billion on both inflows and capital appreciation.
Share Buy Backs
Ameriprise was also busy returning value to its shareholders during the quarter, buying back 3.6 million shares for $153 million.
Strong Balance Sheet
AMP also has a lot of liquidity on its balance sheet, with $3.7 billion in cash and equivalents with a total debt load of more than $9 billion due to its recent acquisition.
Estimates
We saw some pretty solid movement in estimates on the good quarter, with the current year adding 32 cents to $4.38 and the next-year estimate adding 16 cents to $5.15, a bullish 17.50% growth projection.
Valuation
Not only is AMP looking bullish, it also has value, trading with a forward P/E of 12.5X, a nice discount to its peer average of 17X.
On the chart, AMP recently hit a new multiyear high at $55.06 after jumping higher on the good quarter. The MACD below the chart is bullish too, with the short-term average trading ahead of the long-term average. Look for support from the trend line on any weakness, take a look below.

Michael Vodicka is the momentum stock strategist for Zacks.com. He is also the editor in charge of the new Zacks Momentum Trader Service.