Why American Tower (AMT) Outpaced the Stock Market Today
In the latest trading session, American Tower (AMT) closed at $193.62, marking a +1.02% move from the previous day. The stock's change was more than the S&P 500's daily gain of 0.82%. Elsewhere, the Dow saw an upswing of 0.41%, while the tech-heavy Nasdaq appreciated by 0.95%.
Shares of the wireless communications infrastructure company have depreciated by 9.53% over the course of the past month, underperforming the Finance sector's gain of 1.02% and the S&P 500's gain of 5.59%.
Market participants will be closely following the financial results of American Tower in its upcoming release. The company plans to announce its earnings on February 27, 2024. In that report, analysts expect American Tower to post earnings of $2.18 per share. This would mark a year-over-year decline of 6.84%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.73 billion, up 1.03% from the year-ago period.
Investors should also note any 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.71% higher. American Tower currently has a Zacks Rank of #3 (Hold).
Looking at valuation, American Tower is presently trading at a Forward P/E ratio of 18.66. This valuation marks a premium compared to its industry's average Forward P/E of 10.55.
We can also see that AMT currently has a PEG ratio of 1.44. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the REIT and Equity Trust - Other industry stood at 2.47 at the close of the market yesterday.
The REIT and Equity Trust - Other industry is part of the Finance sector. With its current Zacks Industry Rank of 112, this industry ranks in the top 45% of all industries, numbering over 250.
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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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American Tower Corporation (AMT) : Free Stock Analysis Report
