American Tower (AMT) Outperforms Broader Market: What You Need to Know
American Tower (AMT) closed at $197.38 in the latest trading session, marking a +1.69% move from the prior day. The stock exceeded the S&P 500, which registered a gain of 0.86% for the day. Elsewhere, the Dow saw an upswing of 1.22%, while the tech-heavy Nasdaq appreciated by 0.51%.
Shares of the wireless communications infrastructure company witnessed a gain of 3.97% over the previous month, beating the performance of the Finance sector with its gain of 3.29% and the S&P 500's gain of 2.84%.
Investors will be eagerly watching for the performance of American Tower in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $2.56, marking a 0.79% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $2.8 billion, up 1.17% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $10.39 per share and a revenue of $11.27 billion, demonstrating changes of +5.27% and +1.15%, respectively, from the preceding year.
Investors should also take note of any recent adjustments to analyst estimates for American Tower. Such recent modifications usually signify the changing landscape of 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 2.33% higher. American Tower is currently sporting a Zacks Rank of #3 (Hold).
In the context of valuation, American Tower is at present trading with a Forward P/E ratio of 18.68. This represents a premium compared to its industry's average Forward P/E of 11.43.
We can also see that AMT currently has a PEG ratio of 1.3. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the REIT and Equity Trust - Other industry held an average PEG ratio of 2.28.
The REIT and Equity Trust - Other industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 141, finds itself in the bottom 45% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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American Tower Corporation (AMT) : Free Stock Analysis Report
