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

American Tower (AMT) closed the latest trading day at $188.40, indicating a +0.68% change from the previous session's end. The stock outpaced the S&P 500's daily loss of 0.6%. Meanwhile, the Dow lost 0.17%, and the Nasdaq, a tech-heavy index, lost 0.92%.

Heading into today, shares of the wireless communications infrastructure company had lost 8.28% over the past month, lagging the Finance sector's gain of 3.63% and the S&P 500's gain of 3.56% in that time.

Investors will be eagerly watching for the performance of American Tower in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on February 27, 2024. It is anticipated that the company will report an EPS of $2.18, marking a 6.84% fall compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $2.73 billion, showing a 1.03% escalation compared to the year-ago quarter.

Investors should also note any recent changes to analyst estimates for American Tower. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

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Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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. American Tower is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, American Tower is currently trading at a Forward P/E ratio of 18.22. This expresses a premium compared to the average Forward P/E of 11.06 of its industry.

Also, we should mention that AMT has a PEG ratio of 1.43. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the REIT and Equity Trust - Other industry stood at 2.56 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 110, this industry ranks in the top 44% of all industries, numbering over 250.

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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