U.S. Markets closed
  • S&P 500

    3,911.74
    +116.01 (+3.06%)
     
  • Dow 30

    31,500.68
    +823.28 (+2.68%)
     
  • Nasdaq

    11,607.62
    +375.42 (+3.34%)
     
  • Russell 2000

    1,765.74
    +54.07 (+3.16%)
     
  • Crude Oil

    107.06
    +2.79 (+2.68%)
     
  • Gold

    1,828.10
    -1.70 (-0.09%)
     
  • Silver

    21.13
    +0.09 (+0.42%)
     
  • EUR/USD

    1.0559
    +0.0034 (+0.3273%)
     
  • 10-Yr Bond

    3.1250
    +0.0570 (+1.86%)
     
  • Vix

    27.23
    -1.82 (-6.27%)
     
  • GBP/USD

    1.2270
    +0.0009 (+0.0736%)
     
  • USD/JPY

    135.2100
    +0.2770 (+0.2053%)
     
  • BTC-USD

    21,191.66
    +101.13 (+0.48%)
     
  • CMC Crypto 200

    462.12
    +8.22 (+1.81%)
     
  • FTSE 100

    7,208.81
    +188.36 (+2.68%)
     
  • Nikkei 225

    26,491.97
    +320.77 (+1.23%)
     

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

  • Oops!
    Something went wrong.
    Please try again later.
·3 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

American Tower (AMT) closed at $257.83 in the latest trading session, marking a +0.34% move from the prior day. The stock lagged the S&P 500's daily gain of 0.81%. At the same time, the Dow added 0.3%, and the tech-heavy Nasdaq gained 0.61%.

Heading into today, shares of the wireless communications infrastructure company had gained 7.84% over the past month, outpacing the Finance sector's gain of 4.68% and the S&P 500's gain of 5.64% in that time.

American Tower will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.50, up 1.63% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $2.57 billion, up 18.92% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.11 per share and revenue of $10.58 billion. These totals would mark changes of +4.77% and +13.08%, 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 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 0.08% higher. American Tower is currently a Zacks Rank #3 (Hold).

Looking at its valuation, American Tower is holding a Forward P/E ratio of 25.41. This valuation marks a premium compared to its industry's average Forward P/E of 15.81.

It is also worth noting that AMT currently has a PEG ratio of 1.94. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The REIT and Equity Trust - Other was holding an average PEG ratio of 2.91 at yesterday's closing price.

The REIT and Equity Trust - Other industry is part of the Finance sector. This group has a Zacks Industry Rank of 110, putting it in the top 44% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.


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