Ameriprise Financial (AMP) Showing Signs Of Being Water-Logged And Getting Wetter

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Ameriprise Financial ( AMP) as a "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Ameriprise Financial as such a stock due to the following factors:

  • AMP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $99.9 million.
  • AMP has traded 597,186 shares today.
  • AMP traded in a range 202.4% of the normal price range with a price range of $3.90.
  • AMP traded below its daily resistance level (quality: 24 days, meaning that the stock is crossing a resistance level set by the last 24 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).

Stocks matching the 'Water-Logged and Getting Wetter' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.

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More details on AMP:

Ameriprise Financial, Inc., through its subsidiaries, provides a range of financial products and services in the United States and internationally. The stock currently has a dividend yield of 1.7%. AMP has a PE ratio of 17.9. Currently there are 3 analysts that rate Ameriprise Financial a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Ameriprise Financial has been 898,600 shares per day over the past 30 days. Ameriprise Financial has a market cap of $25.0 billion and is part of the financial sector and financial services industry. The stock has a beta of 1.55 and a short float of 0.9% with 2.10 days to cover. Shares are up 16.1% year-to-date as of the close of trading on Wednesday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Ameriprise Financial as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, solid stock price performance, growth in earnings per share and good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

Highlights from the ratings report include:
  • AMP's revenue growth has slightly outpaced the industry average of 0.8%. Since the same quarter one year prior, revenues rose by 10.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Capital Markets industry and the overall market, AMERIPRISE FINANCIAL INC's return on equity exceeds that of both the industry average and the S&P 500.
  • The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • AMERIPRISE FINANCIAL INC has improved earnings per share by 16.7% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, AMERIPRISE FINANCIAL INC increased its bottom line by earning $6.45 versus $4.64 in the prior year. This year, the market expects an improvement in earnings ($8.43 versus $6.45).
  • Net operating cash flow has increased to $1,617.00 million or 34.86% when compared to the same quarter last year. In addition, AMERIPRISE FINANCIAL INC has also vastly surpassed the industry average cash flow growth rate of -175.12%.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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