Ameriprise Gains 14.6% YTD: Should You Buy the Stock Now?

Shares of Ameriprise Financial, Inc. AMP have gained 14.6% so far this year, performing better than the S&P 500 Index’s 12.6% rally and the industry’s 3.9% decline.

If we compare the company’s price performance with its close peers like KKR & Co. Inc. KKR and Ares Management Corporation ARES, it appears that the AMP stock has outperformed both. Year to date, KKR and ARES shares have lost 15.9% and 13.2%, respectively.

YTD Price Performance

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Does the AMP stock have more upside left despite recent strength in price? Let us find out by looking at its fundamental strength and growth prospects.

Key Positives of Ameriprise

Revenue Strength: Supported by a diversified business model, continued investments in technology, strong advisor recruitment, record adviser productivity, robust assets under management/assets under administration (AUM/AUA) growth (seeing a compound annual growth rate of 9%), along with rising adoption of fee-based solutions, Ameriprise’s GAAP net revenues have witnessed a CAGR of 9.2% over 2020-2025. The upward momentum continued in the first half of 2026, with AUM/AUA reaching a record $1.8 trillion as of June 30, 2026.

Revenue Trend

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Driven by product innovation, technology investments and expanding client assets, the company remains well-positioned to generate durable organic growth in the near term. The Zacks Consensus Estimate for AMP’s 2026 and 2027 revenues indicates year-over-year growth of 9.6% and 6.5%, respectively.

Revenue Growth Estimate

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Portfolio Optimization: Ameriprise has consistently optimized its business portfolio to sharpen focus on higher-growth, fee-based businesses and improve long-term profitability. The acquisition of BMO Financial Group’s EMEA asset management business strengthened its global asset management franchise and diversified its geographic footprint, while the divestiture of the Ameriprise Auto & Home (AAH) business enabled the company to concentrate on its core wealth and asset management operations.

At the same time, Ameriprise Bank has become an increasingly important growth engine, with bank assets rising 6% year over year to $25.5 billion in the second quarter of 2026, supported by robust lending growth and an expanding suite of banking products. These strategic initiatives, along with continued investments in adviser capabilities, AI and technology, have enhanced the company’s competitive positioning, improved operating efficiency and strengthened its ability to generate sustainable earnings growth.

Solid Balance Sheet: Ameriprise maintains a strong balance sheet and ample liquidity, providing financial flexibility to invest in growth initiatives. As of June 30, 2026, the company had $10.2 billion in cash and cash equivalents, comfortably exceeding $6.5 billion in total debt.

Ameriprise ended second-quarter 2026 with $2.1 billion in excess capital and $2.8 billion in holding company liquidity, positioning it well to withstand macroeconomic uncertainty while supporting investments in technology, acquisitions and capital returns. Backed by investment-grade credit ratings of A- from S&P Global and Fitch and A3 from Moody’s, all with stable outlooks, the company remains well-equipped to meet its debt obligations and sustain long-term growth.

Efficient Capital Returns: Ameriprise has a strong record of returning capital to shareholders through a combination of steadily rising dividends and aggressive share repurchases. In April 2026, the company increased its quarterly dividend for the 19th time since 2010, underscoring management’s confidence in its earnings power.

It also continues to execute its $4.5-billion share repurchase authorization, with $1.03 billion remaining as of June 30, 2026. Supported by a strong balance sheet, robust free cash flow generation and a conservative payout ratio, the company is well-positioned to sustain attractive capital distributions over the long term.

Analyst Sentiments for AMP

Over the past 30 days, the Zacks Consensus Estimate for Ameriprise’s 2026 earnings of $46.12 per share has been revised 2.7% upward. Its 2027 earnings estimate of $51.45 has been revised 4.1% upward. The estimated figures indicate year-over-year growth rates of 17.2% and 11.6% for 2026 and 2027, respectively.

Earnings Estimate Revision Trend

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Should You Invest in Ameriprise Stock Now?

Ameriprise’s AI-led innovation, solid AUM/AUA balance and strategic portfolio optimization position it for sustained earnings growth. Supported by a robust liquidity and capital position, the company is expected to keep enhancing shareholder value through efficient capital distributions.

In terms of its valuation, the AMP stock is currently trading at a forward 12-month price-to-earnings (P/E) ratio of 11.36X, below the industry average of 14.15. This shows that AMP is currently undervalued than its peers.

P/E (F12M)

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Hence, investors can consider buying the AMP stock now, given its upside potential. Currently, Ameriprise carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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