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American Tower (AMT) Ascends But Remains Behind Market: Some Facts to Note

The latest trading session saw American Tower (AMT) ending at $194.72, denoting a +0.24% adjustment from its last day's close. The stock's change was less than the S&P 500's daily gain of 0.26%. Elsewhere, the Dow saw an upswing of 0.18%, while the tech-heavy Nasdaq appreciated by 0.35%.

The wireless communications infrastructure company's shares have seen an increase of 5.3% over the last month, surpassing the Finance sector's gain of 0.75% and the S&P 500's gain of 3.25%.

The investment community will be paying close attention to the earnings performance of American Tower in its upcoming release. It is anticipated that the company will report an EPS of $2.53, marking a 2.85% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $2.8 billion, showing a 1.2% escalation compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $10.39 per share and revenue of $11.18 billion, which would represent changes of +5.27% and +0.33%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for American Tower. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.02% higher. Currently, American Tower is carrying a Zacks Rank of #2 (Buy).

With respect to valuation, American Tower is currently being traded at a Forward P/E ratio of 18.69. This signifies a premium in comparison to the average Forward P/E of 11.46 for its industry.

Investors should also note that AMT has a PEG ratio of 1.34 right now. 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. By the end of yesterday's trading, the REIT and Equity Trust - Other industry had an average PEG ratio of 2.13.

The REIT and Equity Trust - Other industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 169, placing it within the bottom 33% of over 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

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American Tower Corporation (AMT) : Free Stock Analysis Report

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Zacks Investment Research