American Tower (AMT) Declines More Than Market: Some Information for Investors
The most recent trading session ended with American Tower (AMT) standing at $215.88, reflecting a -0.59% shift from the previouse trading day's closing. The stock's performance was behind the S&P 500's daily loss of 0.28%. Meanwhile, the Dow lost 0.06%, and the Nasdaq, a tech-heavy index, lost 0.56%.
Prior to today's trading, shares of the wireless communications infrastructure company had gained 4.01% over the past month. This has lagged the Finance sector's gain of 8.34% and the S&P 500's gain of 5.24% in that time.
Analysts and investors alike will be keeping a close eye on the performance of American Tower in its upcoming earnings disclosure. In that report, analysts expect American Tower to post earnings of $2.18 per share. This would mark a year-over-year decline of 6.84%. Meanwhile, our latest consensus estimate is calling for revenue of $2.73 billion, up 0.78% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $9.79 per share and revenue of $11.09 billion, indicating changes of +0.31% and +3.53%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for American Tower. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. American Tower is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, American Tower currently has a Forward P/E ratio of 22.18. This denotes a premium relative to the industry's average Forward P/E of 11.64.
We can also see that AMT currently has a PEG ratio of 1.64. 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 currently had an average PEG ratio of 2.46 as of yesterday's close.
The REIT and Equity Trust - Other industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 142, finds itself in the bottom 44% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow AMT in the coming trading sessions, be sure to utilize Zacks.com.
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American Tower Corporation (AMT) : Free Stock Analysis Report
