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

Zacks Equity Research

In the latest trading session, American Tower (AMT) closed at $205.42, marking a +0.31% move from the previous day. This change outpaced the S&P 500's 0.53% loss on the day. Meanwhile, the Dow lost 0.47%, and the Nasdaq, a tech-heavy index, lost 1%.

Heading into today, shares of the wireless communications infrastructure company had lost 0.49% over the past month, lagging the Finance sector's gain of 2.81% and the S&P 500's gain of 2.68% in that time.

Wall Street will be looking for positivity from AMT as it approaches its next earnings report date. This is expected to be July 31, 2019. On that day, AMT is projected to report earnings of $1.93 per share, which would represent year-over-year growth of 1.58%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.84 billion, up 3.22% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.79 per share and revenue of $7.37 billion. These totals would mark changes of -2.5% and -0.95%, respectively, from last year.

Any recent changes to analyst estimates for AMT should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. AMT currently has a Zacks Rank of #2 (Buy).

Looking at its valuation, AMT is holding a Forward P/E ratio of 26.29. For comparison, its industry has an average Forward P/E of 15.47, which means AMT is trading at a premium to the group.

We can also see that AMT currently has a PEG ratio of 1.62. 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. REIT and Equity Trust - Other stocks are, on average, holding a PEG ratio of 2.92 based on yesterday's closing prices.

The REIT and Equity Trust - Other industry is part of the Finance sector. This group has a Zacks Industry Rank of 86, putting it in the top 34% 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.


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