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

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American Tower (AMT - Free Report) closed the most recent trading day at $236.17, moving +0.85% from the previous trading session. This change outpaced the S&P 500's 0.22% gain on the day. At the same time, the Dow lost 0.13%, and the tech-heavy Nasdaq gained 0.22%.

Heading into today, shares of the wireless communications infrastructure company had lost 3.32% over the past month, outpacing the Finance sector's loss of 9.02% and the S&P 500's loss of 10.02% in that time.

American Tower will be looking to display strength as it nears its next earnings release. In that report, analysts expect American Tower to post earnings of $2.45 per share. This would mark year-over-year growth of 1.24%. Our most recent consensus estimate is calling for quarterly revenue of $2.65 billion, up 15.23% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.02 per share and revenue of $10.67 billion. These totals would mark changes of +3.83% and +14.08%, respectively, from last 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. 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. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.4% higher. American Tower is currently a Zacks Rank #3 (Hold).

Investors should also note American Tower's current valuation metrics, including its Forward P/E ratio of 23.58. For comparison, its industry has an average Forward P/E of 12.25, which means American Tower is trading at a premium to the group.

Also, we should mention that AMT has a PEG ratio of 2.22. 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. The REIT and Equity Trust - Other industry currently had an average PEG ratio of 2.19 as of yesterday's close.

The REIT and Equity Trust - Other industry is part of the Finance sector. This group has a Zacks Industry Rank of 148, putting it in the bottom 42% 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.

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