Ameriprise (AMP) Upgraded to Buy: Here's What You Should Know

Core Viewpoint - Ameriprise Financial Services (AMP) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][2]. Earnings Outlook - The Zacks rating upgrade reflects optimism about Ameriprise's earnings potential, which could lead to increased buying pressure and a rise in stock price [2]. - For the fiscal year ending December 2024, Ameriprise is expected to earn $34.65 per share, representing a year-over-year increase of 13.8% [5]. Earnings Estimate Revisions - Over the past three months, the Zacks Consensus Estimate for Ameriprise has increased by 1.9%, indicating a positive trend in earnings estimates [5]. - The Zacks Rank system effectively utilizes earnings estimate revisions to classify stocks, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have generated an average annual return of +25% since 1988 [4]. Institutional Investor Influence - The relationship between changes in earnings estimates and stock price movements is significantly influenced by institutional investors, who adjust their valuations based on these estimates, leading to buying or selling actions that affect stock prices [3]. Market Positioning - The upgrade to Zacks Rank 2 places Ameriprise in the top 20% of Zacks-covered stocks based on estimate revisions, suggesting potential for near-term stock price appreciation [7].