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American Tower (AMT) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research

American Tower (AMT) closed the most recent trading day at $225.91, moving +1.78% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.28%. Meanwhile, the Dow gained 0.09%, and the Nasdaq, a tech-heavy index, added 0.4%.

Heading into today, shares of the wireless communications infrastructure company had gained 0.16% over the past month, outpacing the Finance sector's loss of 0.33% and the S&P 500's loss of 0.14% in that time.

AMT will be looking to display strength as it nears its next earnings release, which is expected to be October 31, 2019. The company is expected to report EPS of $1.96, up 5.95% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.86 billion, up 4.16% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $7.90 per share and revenue of $7.42 billion, which would represent changes of -1.13% and -0.26%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for AMT. 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. 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. Within the past 30 days, our consensus EPS projection remained stagnant. AMT is currently sporting a Zacks Rank of #1 (Strong Buy).

Digging into valuation, AMT currently has a Forward P/E ratio of 28.11. This valuation marks a premium compared to its industry's average Forward P/E of 15.75.

It is also worth noting that AMT currently has a PEG ratio of 1.72. 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 3.4 at yesterday's closing price.

The REIT and Equity Trust - Other industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 83, which puts it in the top 33% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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