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

Zacks Equity Research

American Tower (AMT) closed at $223.47 in the latest trading session, marking a -1.13% move from the prior day. This change lagged the S&P 500's 0.19% gain on the day. Meanwhile, the Dow lost 0.11%, and the Nasdaq, a tech-heavy index, added 0.81%.

Coming into today, shares of the wireless communications infrastructure company had gained 1.79% in the past month. In that same time, the Finance sector gained 1.46%, while the S&P 500 gained 0.56%.

Investors will be hoping for strength from AMT as it approaches its next earnings release, which is expected to be October 31, 2019. In that report, analysts expect AMT to post earnings of $1.96 per share. This would mark year-over-year growth of 5.95%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.86 billion, up 4.16% from the year-ago period.

AMT's full-year Zacks Consensus Estimates are calling for earnings of $7.89 per share and revenue of $7.43 billion. These results would represent year-over-year changes of -1.25% and -0.07%, respectively.

Investors should also note any recent changes to analyst estimates for AMT. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Within the past 30 days, our consensus EPS projection remained stagnant. AMT is currently a Zacks Rank #3 (Hold).

Looking at its valuation, AMT is holding a Forward P/E ratio of 28.65. This represents a premium compared to its industry's average Forward P/E of 16.42.

We can also see that AMT currently has a PEG ratio of 1.75. 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. REIT and Equity Trust - Other stocks are, on average, holding a PEG ratio of 3.39 based on yesterday's closing prices.

The REIT and Equity Trust - Other industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 95, which puts it in the top 38% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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