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Ameriprise Riding High on Strong Fundamentals: Time to Buy?

On Apr 4, we issued an updated report on Ameriprise Financial, Inc. AMP. Its organic and inorganic growth initiatives remain impressive. Also, its strong balance sheet position continues to drive growth. However, consistently increasing expenses remain a major headwind.

Ameriprise’s shares gained 25.4% in the last six months, significantly outperforming the 9.2% growth of the Zacks categorized Financial - Investment Management industry.

While the company’s current-year earnings estimates remained stable over the last 30 days, it holds a Zacks Rank #2 (Buy).

In order to face the competition, Ameriprise has been modifying its product and services consistently to match the needs of its clients. This strategy should lead to revenue growth.

Driven by a solid capital position, Ameriprise consistently enhanced shareholders’ value with its steady capital deployment activities. Moreover, it has shown decent inorganic growth.

However, the company’s expenses witnessed a compound annual growth rate of 3% over the last five years.

Other Stocks to Consider

Some other stocks in the financial space worth considering include KB Financial Group Inc. KB, First Defiance Financial Corp. FDEF and Apollo Global Management, LLC APO. While KB Financial sports a Zacks Rank #1 (Strong Buy), First Defiance and Apollo Global carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

KB Financial’s earnings estimates were revised upward by 4.6% for the current year in the past 30 days. Also, its share price gained 51.4%, over the last one year.

First Defiance’s current-year earnings estimates were revised 1.2% upward over the last 60 days. Also, its shares surged 31.9% in the last one year.

Apollo Global’s current-year earnings estimates were revised 9.2% upward over the last 60 days. Its shares increased 51.4% over the last year.

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