American Tower (AMT) Falls More Steeply Than Broader Market: What Investors Need to Know
In the latest market close, American Tower (AMT) reached $204.95, with a -1.49% movement compared to the previous day. This move lagged the S&P 500's daily loss of 0.56%. Meanwhile, the Dow experienced a drop of 0.25%, and the technology-dominated Nasdaq saw a decrease of 0.59%.
Coming into today, shares of the wireless communications infrastructure company had lost 1.4% in the past month. In that same time, the Finance sector lost 3.24%, while the S&P 500 gained 1.2%.
Investors will be eagerly watching for the performance of American Tower in its upcoming earnings disclosure. The company is forecasted to report an EPS of $2.18, showcasing a 6.84% downward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $2.73 billion, up 1.03% from the year-ago period.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for American Tower. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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. The Zacks Consensus EPS estimate has moved 0.52% higher within the past month. Right now, American Tower possesses a Zacks Rank of #3 (Hold).
Looking at valuation, American Tower is presently trading at a Forward P/E ratio of 20.25. This valuation marks a premium compared to its industry's average Forward P/E of 11.4.
Also, we should mention that AMT has a PEG ratio of 1.56. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The REIT and Equity Trust - Other was holding an average PEG ratio of 2.54 at yesterday's closing price.
The REIT and Equity Trust - Other industry is part of the Finance sector. With its current Zacks Industry Rank of 156, this industry ranks in the bottom 39% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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American Tower Corporation (AMT) : Free Stock Analysis Report
