Ameriprise Financial (AMP): Evaluating Valuation Following Recent Share Price Uptick

Ameriprise Financial (AMP) shares have moved slightly higher today, bucking a recent downward trend that has persisted for the past month. Investors are watching to see if today’s uptick signals a shift after steady declines.

See our latest analysis for Ameriprise Financial.

Zooming out, Ameriprise Financial’s 1-day share price return of 1.34% offers a brief respite after a steady slide. However, it comes in the context of a -5.33% drop over the past month and a -15.55% year-to-date return. While momentum has clearly faded in the short term, the long-term picture remains considerably brighter. A 153% total shareholder return over five years underscores solid historic performance despite recent setbacks.

If Ameriprise’s recent moves have you thinking bigger, it could be the perfect time to broaden your investing horizons and discover fast growing stocks with high insider ownership

Given the recent price weakness, along with notable long-term gains and a current share price well below analyst targets, investors now face a crucial question: Is Ameriprise Financial trading at an attractive value, or are future prospects already reflected in today’s price?

Most Popular Narrative: 16.1% Undervalued

Ameriprise Financial's current share price of $447.56 sits notably below the most widely followed narrative’s fair value estimate of $533.18. The narrative points to a sizable disconnect between the recent market price and forward-looking analyst projections, suggesting further upside potential for investors who buy in at current levels.

Capital flexibility and share repurchase authorization, with a $4.5 billion buyback plan, could lead to EPS growth by reducing the share count. This aligns with shareholder return strategies and financial strength.

Read the complete narrative.

What if the main engine behind this valuation is a bolder, leaner earnings profile, driven by new capital strategies and bold buybacks? Discover what other hard-hitting assumptions fuel the analysts’ optimism and see if you agree with the math behind this narrative.

Result: Fair Value of $533.18 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, ongoing market volatility and competitive pressures in adviser recruiting remain key risks. These factors could challenge Ameriprise Financial’s ability to meet optimistic forecasts.

Find out about the key risks to this Ameriprise Financial narrative.

Build Your Own Ameriprise Financial Narrative

If you see things differently or want to dig deeper into the numbers yourself, it’s quick and simple to build your own perspective from scratch, in just a few minutes. Do it your way

A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding Ameriprise Financial.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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