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American Tower (AMT) Outpaces Stock Market Gains: What You Should Know
American Tower (AMT - Free Report) closed at $265.09 in the latest trading session, marking a +1.34% move from the prior day. This change outpaced the S&P 500's 1.06% gain on the day. Meanwhile, the Dow gained 0.71%, and the Nasdaq, a tech-heavy index, added 0.18%.
Prior to today's trading, shares of the wireless communications infrastructure company had lost 5.81% over the past month. This has lagged the Finance sector's loss of 0.38% and the S&P 500's loss of 1.14% in that time.
Investors will be hoping for strength from American Tower as it approaches its next earnings release. The company is expected to report EPS of $2.42, down 2.81% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.66 billion, up 8.38% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.84 per share and revenue of $10.64 billion. These totals would mark changes of +1.97% and +13.67%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for American Tower. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.05% higher. American Tower currently has a Zacks Rank of #3 (Hold).
In terms of valuation, American Tower is currently trading at a Forward P/E ratio of 26.59. Its industry sports an average Forward P/E of 13.07, so we one might conclude that American Tower is trading at a premium comparatively.
We can also see that AMT currently has a PEG ratio of 2.29. 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 2.28 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 73, which puts it in the top 29% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.