Back to top

Image: Bigstock

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

Read MoreHide Full Article

In the latest trading session, American Tower (AMT - Free Report) closed at $257.20, marking a +0.27% move from the previous day. This change lagged the S&P 500's 1.92% gain on the day. At the same time, the Dow added 2.15%, and the tech-heavy Nasdaq gained 0.16%.

Coming into today, shares of the wireless communications infrastructure company had gained 9.54% in the past month. In that same time, the Finance sector lost 1.27%, while the S&P 500 gained 1.54%.

Investors will be hoping for strength from American Tower as it approaches its next earnings release, which is expected to be July 28, 2022. In that report, analysts expect American Tower to post earnings of $2.43 per share. This would mark year-over-year growth of 0.41%. Our most recent consensus estimate is calling for quarterly revenue of $2.65 billion, up 15.23% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $9.93 per share and revenue of $10.67 billion, which would represent changes of +2.9% and +14.09%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for American Tower. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.36% higher. American Tower currently has a Zacks Rank of #3 (Hold).

Digging into valuation, American Tower currently has a Forward P/E ratio of 25.83. This represents a premium compared to its industry's average Forward P/E of 12.46.

Meanwhile, AMT's PEG ratio is currently 2.44. 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. The REIT and Equity Trust - Other was holding an average PEG ratio of 2.34 at yesterday's closing price.

The REIT and Equity Trust - Other industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 83, which puts it in the top 33% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


American Tower Corporation (AMT) - free report >>

Published in