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American Tower (AMT) Dips More Than Broader Markets: What You Should Know

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American Tower (AMT - Free Report) closed the most recent trading day at $249.98, moving -0.93% from the previous trading session. This change lagged the S&P 500's daily loss of 0.81%. Meanwhile, the Dow lost 0.56%, and the Nasdaq, a tech-heavy index, lost 1.27%.

Coming into today, shares of the wireless communications infrastructure company had lost 1.25% in the past month. In that same time, the Finance sector gained 3.79%, while the S&P 500 gained 5.06%.

Wall Street will be looking for positivity from AMT as it approaches its next earnings report date. The company is expected to report EPS of $2.08, up 4% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.96 billion, up 0.39% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $8.28 per share and revenue of $7.85 billion, which would represent changes of +7.12% and +3.57%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for AMT. 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 0.2% higher within the past month. AMT is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, AMT is holding a Forward P/E ratio of 30.48. For comparison, its industry has an average Forward P/E of 15.44, which means AMT is trading at a premium to the group.

We can also see that AMT currently has a PEG ratio of 2.12. 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. REIT and Equity Trust - Other stocks are, on average, holding a PEG ratio of 3.92 based on yesterday's closing prices.

The REIT and Equity Trust - Other industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 225, which puts it in the bottom 12% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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.

To follow AMT in the coming trading sessions, be sure to utilize Zacks.com.


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