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American Tower (AMT) Gains But Lags Market: What You Should Know

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American Tower (AMT) closed at $265.28 in the latest trading session, marking a +0.73% move from the prior day. The stock lagged the S&P 500's daily gain of 0.88%.

Heading into today, shares of the wireless communications infrastructure company had gained 7.92% over the past month, outpacing the Finance sector's gain of 3.99% and the S&P 500's gain of 0.15% in that time.

Wall Street will be looking for positivity from AMT as it approaches its next earnings report date. The company is expected to report EPS of $2.32, up 12.08% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.19 billion, up 14.3% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.40 per share and revenue of $8.83 billion. These totals would mark changes of +11.37% and +9.77%, respectively, from last year.

Any recent changes to analyst estimates for AMT should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.31% higher. AMT is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that AMT has a Forward P/E ratio of 28.02 right now. This represents a premium compared to its industry's average Forward P/E of 18.57.

We can also see that AMT currently has a PEG ratio of 1.99. 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. AMT's industry had an average PEG ratio of 3.51 as of yesterday's close.

The REIT and Equity Trust - Other industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 208, which puts it in the bottom 19% 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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