American Tower (AMT) Dips More Than Broader Markets: What You Should Know
American Tower (AMT) closed at $188 in the latest trading session, marking a -1.57% move from the prior day. This change lagged the S&P 500's 0.8% loss on the day. At the same time, the Dow lost 0.3%, and the tech-heavy Nasdaq lost 0.03%.
Heading into today, shares of the wireless communications infrastructure company had lost 18.43% over the past month, lagging the Finance sector's loss of 6.08% and the S&P 500's loss of 5.13% in that time.
Investors will be hoping for strength from American Tower as it approaches its next earnings release, which is expected to be October 27, 2022. In that report, analysts expect American Tower to post earnings of $2.42 per share. This would mark a year-over-year decline of 2.81%. Our most recent consensus estimate is calling for quarterly revenue of $2.67 billion, up 8.69% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.85 per share and revenue of $10.64 billion. These totals would mark changes of +2.07% and +13.67%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for American Tower. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.09% lower. American Tower currently has a Zacks Rank of #3 (Hold).
Investors should also note American Tower's current valuation metrics, including its Forward P/E ratio of 19.39. This represents a premium compared to its industry's average Forward P/E of 11.61.
Investors should also note that AMT has a PEG ratio of 1.56 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The REIT and Equity Trust - Other industry currently had an average PEG ratio of 1.89 as of yesterday's close.
The REIT and Equity Trust - Other industry is part of the Finance sector. This group has a Zacks Industry Rank of 137, putting it in the bottom 46% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
American Tower Corporation (AMT) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
