Minneapolis, Minnesota-based Ameriprise Financial, Inc. (AMP) is a diversified financial services company that helps individuals and institutions build, manage, and protect their wealth. Its business combines financial advice, investment management, and retirement and insurance solutions, giving it multiple ways to earn revenue from long-term client relationships.
Companies valued at $10 billion or more are typically classified as “large-cap stocks,” and AMP, with a market cap of $50.4 billion, fits the label perfectly. Its market leadership comes from its diversified wealth-management platform, recurring fee-based revenue, and strong client relationships. Its advisor network supports long-term customer retention, while its asset-management and retirement businesses provide additional revenue streams.
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Ameriprise Financial’s shares are riding a strong upswing, trading just 2.8% below its 52-week high of $572.56, reached on Aug. 14. Shares of AMP have surged 23.9% over the past three months, outpacing the State Street Financial Select Sector SPDR ETF’s (XLF) 10.3% return.
www.barchart.com AMP has soared 13% over the past 52 weeks, outperforming the XLF’s 7.9% return over the same time period. Moreover, on a YTD basis, shares of AMP are up 13.5%, compared to the ETF’s 4.6% rise. Ameriprise shows its rally is more than a short-lived burst of momentum.
AMP has been trading above its 50-day and 200-day moving averages since the end of July, reinforcing the stock’s strong bullish momentum.
www.barchart.com AMP’s outperformance over the past year has been driven by strong asset growth, rising fee-based revenue, client net inflows, and higher advisor productivity. The fundamentals make the story even more compelling, with its EPS growing 20.8% annually over the past five years, faster than revenue at 8.7%. Tangible book value per share has accelerated to 19.1% annual growth over the past two years, and a market-beating 65.2% average ROE highlights management’s ability to put capital to work profitably.
Further, Ameriprise is positioning itself to make financial advice more efficient, scalable, and competitive by combining AI with its existing data and technology infrastructure. On July 27, AMP shares popped 1.7% after Ameriprise highlighted its $1 billion annual technology investment, including AI capabilities. The firm is embedding AI into advisor workflows to accelerate practice growth, streamline operations, and deliver more personalized advice at scale. Early results are encouraging, with advisors using its insights capabilities seeing a significant increase in net flows.
But the story doesn’t end with AI, as Ameriprise is also attracting the advisors who drive its growth. Steinmetz Jackson Wealth Management Group recently joined its branch channel from Janney Montgomery Scott with more than $370 million in client assets, drawn by Ameriprise’s sophisticated planning tools, integrated technology, and AI capabilities. With approximately 1,700 experienced financial advisors joining the firm over the past five years, Ameriprise is continuing to expand its advisor network and strengthen its wealth-management franchise.
AMP is leaving its rivals in the dust. In the competitive asset management industry, AMP has surpassed its rival, Raymond James Financial, Inc. (RJF), which gained 6.5% over the past 52 weeks and 9.9% on a YTD basis.
The stock has a consensus rating of "Moderate Buy” from the 15 analysts covering it, and the mean price target of $582.54 suggests a 4.6% premium to its current price levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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