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Ameriprise Financial - AI Stock Analysis

Analysis generated November 16, 2024

Ameriprise Financial, Inc. is an American diversified financial services company that provides financial planning, wealth management, asset management, and insurance services. Established in 1894, its long history and established market presence allow it to be recognized as a stable and reliable financial entity. The company primarily operates within the United States and maintains a range of financial products and services to suit diverse customer demographics.

Fundamental Analysis

Revenue for Ameriprise Financial in the last quarter was $4.56 billion, reflecting a 3.83% growth compared to the previous quarter. This upward trend signifies positive progress. Furthermore, the year-over-year growth shows an 11.87% increase, reaffirming the company's expanding revenue base over a longer term.

However, Net Income posed a concern as it stood at $511 million, marking a significant decrease of 38.36% from the previous quarter and a 41.40% reduction compared to the same quarter last year. This steep decline may indicate underlying issues affecting profitability that need to be closely monitored.

EBITDA for the last quarter was $1.57 billion, showing a minor increase of 0.19% from the previous quarter. Year-over-year, EBITDA increased by 11.24%, indicating robust growth in operational earnings performance.

The current Price-to-Earnings (P/E) ratio stands at 21.42, which suggests that the stock price is within the normal range for the market. While insiders have been selling their stock in recent months, which can be viewed as a bearish indicator, the company’s fundamentals remain stable.

Technical Analysis

The current stock price of Ameriprise Financial is $562.44, which reflects an increase of 8.99% from a month ago, indicating a strong short-term upward trend. Over the past year, the stock price has increased by 63.92%, suggesting solid long-term growth and resilience in the market.

Despite this, the trend appears to be bearish. The current SMA10 (Simple Moving Average for 10 days) is 557.52, which is slightly lower than the previous SMA10 of 558.02, indicating a potential downward trend. The Relative Strength Index (RSI) is 68.2, which is approaching overbought territory, suggesting a neutral condition with possible downward adjustment.

Alternative Data Analysis

The number of open job postings at Ameriprise Financial is 332, remaining stable over the past few months. This stability in employment opportunities indicates a steady operational environment without significant expansion or contraction.

Web traffic data estimates that Ameriprise Financial’s website receives about 2.7 million visitors, with no significant change in recent months. This stability indicates a consistent level of customer interest and engagement.

On social media, Ameriprise Financial has 4,300 followers on Instagram, which is up by 7% over the past few months. This increase suggests growing interest and engagement on this platform. Conversely, the company has 6,900 followers on Twitter, a decrease of 1% in the last couple of months. This drop indicates a slight reduction in engagement.

According to AltIndex's AI score, Ameriprise Financial scores 74, which is a buy signal based on a combination of fundamental, technical, and alternative data analysis.

Conclusion

Ameriprise Financial demonstrates solid revenue growth both quarter-over-quarter and year-over-year. Despite this, notable declines in net income pose potential concerns regarding profitability. On the technical front, the stock enjoys robust price appreciation both short and long term, although certain indicators suggest a cautious outlook.

Stability in employment opportunities paired with consistent web traffic underscores the company’s operational steadiness. Albeit mixed social media engagement indicates variances in public interest, the overall profile reflects a well-grounded position.

Taking all factors—fundamental, technical, and alternative data—into account, and considering AltIndex's AI score of 74, Ameriprise Financial seems to present a moderately strong investment opportunity. Therefore, based on a comprehensive evaluation, a "Buy" recommendation is suggested, albeit with a note of caution regarding potential short-term profitability challenges.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.