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American Tower (AMT) Gains But Lags Market: What You Should Know

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American Tower (AMT - Free Report) closed the most recent trading day at $254.04, moving +0.99% from the previous trading session. This move lagged the S&P 500's daily gain of 1.09%.

Heading into today, shares of the wireless communications infrastructure company had gained 10.7% over the past month, outpacing the Finance sector's gain of 1.84% and the S&P 500's gain of 5.05% in that time.

Wall Street will be looking for positivity from AMT as it approaches its next earnings report date. This is expected to be April 29, 2021. In that report, analysts expect AMT to post earnings of $2.32 per share. This would mark year-over-year growth of 9.43%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.18 billion, up 9.41% from the year-ago period.

AMT's full-year Zacks Consensus Estimates are calling for earnings of $9.30 per share and revenue of $8.86 billion. These results would represent year-over-year changes of +10.19% and +10.12%, respectively.

Investors should also note any recent changes to analyst estimates for AMT. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

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. The Zacks Consensus EPS estimate has moved 0.88% higher within the past month. AMT is currently a Zacks Rank #3 (Hold).

Looking at its valuation, AMT is holding a Forward P/E ratio of 27.04. For comparison, its industry has an average Forward P/E of 18.26, which means AMT is trading at a premium to the group.

Also, we should mention that AMT has a PEG ratio of 1.87. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. AMT's industry had an average PEG ratio of 3.7 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 204, which puts it in the bottom 20% 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.

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