American Tower (AMT) Declines More Than Market: Some Information for Investors
The most recent trading session ended with American Tower (AMT) standing at $197.29, reflecting a -1.46% shift from the previouse trading day's closing. The stock's performance was behind the S&P 500's daily loss of 0.07%. Elsewhere, the Dow gained 0.16%, while the tech-heavy Nasdaq lost 0.36%.
Heading into today, shares of the wireless communications infrastructure company had lost 7.81% over the past month, lagging the Finance sector's loss of 1.77% and the S&P 500's gain of 3.05% in that time.
Market participants will be closely following the financial results of American Tower in its upcoming release. The company plans to announce its earnings on February 27, 2024. The company's earnings per share (EPS) are projected to be $2.18, reflecting a 6.84% decrease from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $2.73 billion, up 1.03% from the year-ago period.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for American Tower. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.86% increase. American Tower currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that American Tower has a Forward P/E ratio of 19.49 right now. Its industry sports an average Forward P/E of 11.39, so one might conclude that American Tower is trading at a premium comparatively.
One should further note that AMT currently holds a PEG ratio of 1.51. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The REIT and Equity Trust - Other industry had an average PEG ratio of 2.52 as trading concluded yesterday.
The REIT and Equity Trust - Other industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 150, which puts it in the bottom 41% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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American Tower Corporation (AMT) : Free Stock Analysis Report
