Yahoo Finance Is Ameriprise Financial (AMP) Stock Undervalued Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is Ameriprise Financial (AMP). AMP is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 9.67 right now. For comparison, its industry sports an average P/E of 12.65. Over the past 52 weeks, AMP's Forward P/E has been as high as 12.71 and as low as 7.92, with a median of 10.47.
Investors will also notice that AMP has a PEG ratio of 0.54. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. AMP's industry currently sports an average PEG of 0.66. Over the last 12 months, AMP's PEG has been as high as 0.77 and as low as 0.50, with a median of 0.64.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. AMP has a P/S ratio of 2.18. This compares to its industry's average P/S of 2.42.
Finally, investors should note that AMP has a P/CF ratio of 13.35. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. AMP's P/CF compares to its industry's average P/CF of 27.65. AMP's P/CF has been as high as 15.71 and as low as 7.92, with a median of 10.92, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Ameriprise Financial is likely undervalued currently. And when considering the strength of its earnings outlook, AMP sticks out at as one of the market's strongest value stocks.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Ameriprise Financial, Inc. (AMP) : Free Stock Analysis Report
