American Tower (AMT) Increases Yet Falls Behind Market: What Investors Need to Know

American Tower (AMT) closed the most recent trading day at $172.58, moving +1.3% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 2.91% for the day. On the other hand, the Dow registered a gain of 2.49%, and the technology-centric Nasdaq increased by 3.83%.

Shares of the wireless communications infrastructure company have depreciated by 10.43% over the course of the past month, underperforming the Finance sector's loss of 7.75%, and the S&P 500's loss of 7.64%.

Analysts and investors alike will be keeping a close eye on the performance of American Tower in its upcoming earnings disclosure. The company is forecasted to report an EPS of $2.45, showcasing a 10.91% downward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $2.66 billion, indicating a 3.66% upward movement from the same quarter last year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $10.94 per share and a revenue of $10.86 billion, signifying shifts of +1.67% and +2.06%, respectively, from the last year.

It is also important to note the recent changes to analyst estimates for American Tower. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. At present, American Tower boasts a Zacks Rank of #3 (Hold).

In the context of valuation, American Tower is at present trading with a Forward P/E ratio of 15.58. This expresses a premium compared to the average Forward P/E of 11.04 of its industry.

Investors should also note that AMT has a PEG ratio of 0.69 right now. 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 2.3 based on yesterday's closing prices.

The REIT and Equity Trust - Other industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 88, finds itself in the top 36% echelons of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming 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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