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

Zacks Equity Research

American Tower (AMT) closed at $224.45 in the latest trading session, marking a -0.81% move from the prior day. This change lagged the S&P 500's daily gain of 1.09%. Elsewhere, the Dow gained 1.21%, while the tech-heavy Nasdaq added 1.34%.

Heading into today, shares of the wireless communications infrastructure company had gained 3.39% over the past month, outpacing the Finance sector's loss of 1.13% and the S&P 500's loss of 1.17% 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 October 31, 2019. The company is expected to report EPS of $1.96, up 5.95% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue 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 should also note any recent changes to analyst estimates for AMT. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. AMT is currently sporting a Zacks Rank of #1 (Strong Buy).

Investors should also note AMT's current valuation metrics, including its Forward P/E ratio of 28.65. This valuation marks a premium compared to its industry's average Forward P/E of 16.

Investors should also note that AMT has a PEG ratio of 1.78 right now. 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. The REIT and Equity Trust - Other industry currently had an average PEG ratio of 3.33 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 82, which puts it in the top 33% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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