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American Tower (AMT) Gains But Lags Market: What You Should Know

American Tower (AMT) closed the most recent trading day at $221.06, moving +0.21% from the previous trading session. The stock lagged the S&P 500's daily gain of 1.97%. At the same time, the Dow added 1.88%, and the tech-heavy Nasdaq gained 0.25%.

Heading into today, shares of the wireless communications infrastructure company had lost 12.94% over the past month, lagging the Finance sector's loss of 9.76% and the S&P 500's loss of 9.93% in that time.

Investors will be hoping for strength from American Tower as it approaches its next earnings release. The company is expected to report EPS of $2.43, down 2.41% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.66 billion, up 8.51% from the prior-year quarter.

AMT's full-year Zacks Consensus Estimates are calling for earnings of $9.86 per share and revenue of $10.65 billion. These results would represent year-over-year changes of +2.18% and +13.77%, respectively.

Any recent changes to analyst estimates for American Tower should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

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. The Zacks Consensus EPS estimate has moved 0.23% higher within the past month. American Tower is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note American Tower's current valuation metrics, including its Forward P/E ratio of 22.38. Its industry sports an average Forward P/E of 11.45, so we one might conclude that American Tower is trading at a premium comparatively.

Also, we should mention that AMT has a PEG ratio of 1.93. 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 1.9 based on yesterday's closing prices.

The REIT and Equity Trust - Other industry is part of the Finance sector. This group has a Zacks Industry Rank of 88, putting it in the top 35% 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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