Among top stocks to buy and watch, Big Cap 20 component and financial advisor Ameriprise Financial (AMP) had quite the bullish run following its most recent earnings release last October. Shares have risen over 23% since then.
The stock more recently formed an add-on buy point in the form of a three-weeks-tight pattern.
In late July, Ameriprise began forming a double-bottom base with a 350.94 buy point. After a powerful November rally, the stock broke out on Nov. 20 in light volume. But the real rally began on Oct. 26, one day after the firm reported strong third-quarter earnings.
Shares ran up over 12% in November and another 7% in December.
Now, with the stock extended from the buy point and trading near all-time highs, shares have formed a three-weeks-tight with a 383.78 entry. A move above that level in strong volume could be a buying opportunity for investors, or a place to add shares to an existing position. The pattern can also be viewed as a four-weeks-tight following another week of calm price action.
While the stock maintains a strong Composite Rating of 95, it also showed a declining number of funds invested, which could be a concern. The total number of funds dropped to 2,099 in the most recent quarter, from 2,144 in the third quarter and 2,115 in the first quarter.
But the stock shows other positives, such as a relative strength line that is trending higher. Also, a Relative Strength Rating of 83 is fairly decent.
Stocks To Buy And Watch: Ameriprise
Ameriprise offers financial advice and wealth management services. Its wealth management practice targets households with $500,000 to $5 million in investable assets.
In its most recent quarter, the firm reported adjusted operating earnings of $6.96, down 5% from the same quarter a year prior. Ameriprise noted in its third-quarter earnings release that this was due to “market impacts on the valuation of derivatives and market risk benefits.”
On the positive side, the firm saw an increase in client assets and assets under management. Total client assets jumped close to 15%, to $816 billion, up from $711 billion a year earlier. Assets under management rose 12% to $1.23 trillion, thanks to strong client net inflows and market appreciation.
Despite a deceleration in EPS growth, sales growth continues to accelerate for Ameriprise. Revenue jumped 13% year over year in the third quarter. That’s up from an 11% increase in the quarter prior.
Earnings are expected to show an overall increase of 15% for 2023, followed by growth of 13% in 2024, according to MarketSmith.