American Tower (AMT) Ascends While Market Falls: Some Facts to Note

In the latest close session, American Tower (AMT) was up +1.15% at $182.76. The stock's performance was ahead of the S&P 500's daily loss of 0.28%. On the other hand, the Dow registered a loss of 0.44%, and the technology-centric Nasdaq decreased by 0.28%.

Shares of the wireless communications infrastructure company have depreciated by 3.18% over the course of the past month, outperforming the Finance sector's loss of 6.73%, and the S&P 500's loss of 3.59%.

Investors will be eagerly watching for the performance of American Tower in its upcoming earnings disclosure. In that report, analysts expect American Tower to post earnings of $2.45 per share. This would mark a year-over-year decline of 10.91%. Meanwhile, our latest consensus estimate is calling for revenue of $2.66 billion, up 3.66% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $10.94 per share and revenue of $10.86 billion, which would represent changes of +1.67% and +2.06%, respectively, from the prior year.

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 business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection has moved 0.6% lower. Currently, American Tower is carrying a Zacks Rank of #3 (Hold).

From a valuation perspective, American Tower is currently exchanging hands at a Forward P/E ratio of 16.52. This denotes a premium relative to the industry average Forward P/E of 11.55.

Also, we should mention that AMT has a PEG ratio of 0.74. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the REIT and Equity Trust - Other industry had an average PEG ratio of 2.47.

The REIT and Equity Trust - Other industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 140, placing it within the bottom 43% of over 250 industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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American Tower Corporation (AMT): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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