American Tower (AMT) Outpaces Stock Market Gains: What You Should Know

·3-min read

American Tower (AMT) closed at $204.34 in the latest trading session, marking a +1.57% move from the prior day. This change outpaced the S&P 500's 1.44% gain on the day. At the same time, the Dow added 1.26%, and the tech-heavy Nasdaq gained 5.21%.

Coming into today, shares of the wireless communications infrastructure company had gained 1.85% in the past month. In that same time, the Finance sector lost 6.37%, while the S&P 500 gained 2.28%.

Wall Street will be looking for positivity from American Tower as it approaches its next earnings report date. The company is expected to report EPS of $2.42, down 5.1% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.74 billion, up 3.12% from the prior-year quarter.

AMT's full-year Zacks Consensus Estimates are calling for earnings of $9.80 per share and revenue of $11.03 billion. These results would represent year-over-year changes of +0.41% and +3%, respectively.

Investors might also notice recent changes to analyst estimates for American Tower. Recent revisions tend to reflect the latest near-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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.33% higher within the past month. American Tower is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, American Tower is holding a Forward P/E ratio of 20.54. This valuation marks a premium compared to its industry's average Forward P/E of 10.81.

Investors should also note that AMT has a PEG ratio of 1.83 right now. 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. AMT's industry had an average PEG ratio of 2.22 as of yesterday's close.

The REIT and Equity Trust - Other industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 97, which puts it in the top 39% of all 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.

Make sure to utilize to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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