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American Tower (AMT) Gains As Market Dips: What You Should Know

Zacks Equity Research

American Tower (AMT) closed at $222.98 in the latest trading session, marking a +1.01% move from the prior day. This move outpaced the S&P 500's daily loss of 1.51%. Elsewhere, the Dow lost 1.69%, while the tech-heavy Nasdaq lost 1.53%.

Prior to today's trading, shares of the wireless communications infrastructure company had lost 10.61% over the past month. This has was narrower than the Finance sector's loss of 26.36% and the S&P 500's loss of 18.13% in that time.

Wall Street will be looking for positivity from AMT as it approaches its next earnings report date. On that day, AMT is projected to report earnings of $1.86 per share, which would represent year-over-year growth of 1.09%. Our most recent consensus estimate is calling for quarterly revenue of $2 billion, up 10.5% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $8.55 per share and revenue of $8.12 billion, which would represent changes of +10.61% and +7.16%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for AMT. Recent revisions tend to reflect the latest near-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. 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.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.79% lower. AMT is currently a Zacks Rank #3 (Hold).

Investors should also note AMT's current valuation metrics, including its Forward P/E ratio of 25.83. Its industry sports an average Forward P/E of 9.84, so we one might conclude that AMT is trading at a premium comparatively.

Also, we should mention that AMT has a PEG ratio of 1.35. 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 was holding an average PEG ratio of 2.92 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 102, putting it in the top 40% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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