We came across a bullish thesis on Ameriprise Financial, Inc. on The Illiquid Edge’s Substack. In this article, we will summarize the bulls’ thesis on AMP. Ameriprise Financial, Inc.’s share was trading at $473.67 as of February 13th. AMP’s trailing and forward P/E were 15.29 and 11.06 respectively according to Yahoo Finance.
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Ameriprise Financial (AMP) stands out as a high-quality, long-term compounder with deep roots dating back to 1894, when it was founded as Investors Syndicate before eventually becoming part of American Express and later spinning off in 2005. That spin-off proved highly successful, delivering a 15% CAGR and becoming the top-performing stock in the S&P 500 Financials Index over that period.
Today, approximately 60% of revenue comes from Advice & Wealth Management, with the remainder split between Asset Management and Retirement & Protection Solutions, including insurance products, all generated domestically. Earnings growth has been primarily driven by wealth management through rising assets under management (AUM), increased product penetration, and client growth rather than advisor headcount expansion.
The business benefits from capital-light, fee-based models, with revenues tied to advisory and wrap fees that align advisor and client interests and reduce reliance on transactional commissions. Wealth management targets the underserved mass-affluent segment, where advisor departures from wirehouses have supported recruiting momentum.
Financially, the company generates a striking 59.6% ROE, 15% three-year EPS growth, and trades at 12.4x LTM earnings, implying a PEG ratio of 0.83. While EBITDA has grown at 8%, aggressive share repurchases have amplified per-share growth. Although risks such as advisor attrition, fee compression, and market sensitivity remain, Ameriprise Financial’s diversified, vertically integrated model and disciplined capital returns position it as an attractively valued, durable compounder for long-term investors.
Previously, we covered a bullish thesis on “BlackRock, Inc. (BLK)” by “Kroker Equity Research” in February 2025, which highlighted the “AUM growth, iShares dominance, and Aladdin platform supporting earnings”. BLK’s stock price has appreciated by 8.01% since our coverage. “The Illiquid Edge” shares a similar but emphasizes on Ameriprise Financial, Inc.’s wealth management focus, advisor model, and capital returns.
Ameriprise Financial, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 52 hedge fund portfolios held AMP at the end of the third quarter which was 41 in the previous quarter. While we acknowledge the risk and potential of AMP as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AMP and that has 10,000% upside potential, check out our report about this cheapest AI stock.
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Disclosure: None.
