American Tower (AMT) Stock Sinks As Market Gains: What You Should Know
American Tower (AMT) closed at $198.19 in the latest trading session, marking a -1.86% move from the prior day. This move lagged the S&P 500's daily gain of 1.3%. At the same time, the Dow added 0.98%, and the tech-heavy Nasdaq gained 7.48%.
Coming into today, shares of the wireless communications infrastructure company had lost 3.95% in the past month. In that same time, the Finance sector lost 10.17%, while the S&P 500 lost 2.95%.
Wall Street will be looking for positivity from American Tower as it approaches its next earnings report date. On that day, American Tower is projected to report earnings of $2.42 per share, which would represent a year-over-year decline of 5.1%. Meanwhile, our latest consensus estimate is calling for revenue of $2.74 billion, up 3.07% from the prior-year quarter.
AMT's full-year Zacks Consensus Estimates are calling for earnings of $9.79 per share and revenue of $11.03 billion. These results would represent year-over-year changes of +0.31% and +3.01%, respectively.
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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 4.21% lower. 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 20.64. This represents a premium compared to its industry's average Forward P/E of 10.86.
Also, we should mention that AMT has a PEG ratio of 2.01. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The REIT and Equity Trust - Other was holding an average PEG ratio of 2.36 at yesterday's closing price.
The REIT and Equity Trust - Other industry is part of the Finance sector. This group has a Zacks Industry Rank of 143, putting it in the bottom 44% 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.
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