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

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In the latest trading session, American Tower (AMT) closed at $251.50, marking a +1.92% move from the previous day. This change outpaced the S&P 500's 1.89% gain on the day. Meanwhile, the Dow gained 1.17%, and the Nasdaq, a tech-heavy index, added 0.75%.

Prior to today's trading, shares of the wireless communications infrastructure company had lost 15.63% over the past month. This has lagged the Finance sector's loss of 2.25% and the S&P 500's loss of 7.36% in that time.

American Tower will be looking to display strength as it nears its next earnings release, which is expected to be February 24, 2022. On that day, American Tower is projected to report earnings of $2.19 per share, which would represent year-over-year growth of 5.8%. Our most recent consensus estimate is calling for quarterly revenue of $2.42 billion, up 13.79% from the year-ago period.

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 a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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. Over the past month, the Zacks Consensus EPS estimate has moved 0.22% lower. American Tower currently has a Zacks Rank of #4 (Sell).

Investors should also note American Tower's current valuation metrics, including its Forward P/E ratio of 23.91. Its industry sports an average Forward P/E of 14.52, so we one might conclude that American Tower is trading at a premium comparatively.

Meanwhile, AMT's PEG ratio is currently 1.8. 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. AMT's industry had an average PEG ratio of 2.54 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 156, which puts it in the bottom 39% 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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