American Tower (AMT) Sees a More Significant Dip Than Broader Market: Some Facts to Know
American Tower (AMT) closed the latest trading day at $197.34, indicating a -0.93% change from the previous session's end. The stock's change was less than the S&P 500's daily loss of 0.65%. Elsewhere, the Dow saw a downswing of 0.49%, while the tech-heavy Nasdaq depreciated by 0.96%.
The wireless communications infrastructure company's stock has climbed by 5.14% in the past month, exceeding the Finance sector's gain of 3.96% and the S&P 500's gain of 3.27%.
Analysts and investors alike will be keeping a close eye on the performance of American Tower in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $2.51, reflecting a 1.18% decrease from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.81 billion, up 1.37% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $10.27 per share and a revenue of $11.3 billion, demonstrating changes of +4.05% and +1.38%, respectively, from the preceding year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for American Tower. 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 exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Within the past 30 days, our consensus EPS projection has moved 0.71% higher. American Tower is currently a Zacks Rank #3 (Hold).
Looking at its valuation, American Tower is holding a Forward P/E ratio of 19.39. Its industry sports an average Forward P/E of 11.14, so one might conclude that American Tower is trading at a premium comparatively.
We can additionally observe that AMT currently boasts a PEG ratio of 1.35. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the REIT and Equity Trust - Other industry was having an average PEG ratio of 2.34.
The REIT and Equity Trust - Other industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 141, which puts it in the bottom 45% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
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
