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American Tower (AMT) Stock Drops Despite Market Gains: Important Facts to Note
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American Tower (AMT - Free Report) closed at $157.68 in the latest trading session, marking a -0.27% move from the prior day. This move lagged the S&P 500's daily gain of 0.81%. Meanwhile, the Dow experienced a rise of 0.39%, and the technology-dominated Nasdaq saw an increase of 1.35%.
Heading into today, shares of the wireless communications infrastructure company had lost 12.37% over the past month, lagging the Finance sector's loss of 6.45% and the S&P 500's loss of 6.19% in that time.
The investment community will be paying close attention to the earnings performance of American Tower in its upcoming release. The company's earnings per share (EPS) are projected to be $2.18, reflecting a 7.63% decrease from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $2.76 billion, indicating a 3.15% upward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $9.72 per share and revenue of $11.05 billion, indicating changes of -0.41% and +3.18%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for American Tower. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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. Within the past 30 days, our consensus EPS projection has moved 0.02% lower. At present, American Tower boasts a Zacks Rank of #3 (Hold).
In terms of valuation, American Tower is currently trading at a Forward P/E ratio of 16.27. This indicates a premium in contrast to its industry's Forward P/E of 9.79.
Also, we should mention that AMT has a PEG ratio of 1.17. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The REIT and Equity Trust - Other was holding an average PEG ratio of 2.11 at yesterday's closing price.
The REIT and Equity Trust - Other industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 181, positioning it in the bottom 29% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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American Tower (AMT) Stock Drops Despite Market Gains: Important Facts to Note
American Tower (AMT - Free Report) closed at $157.68 in the latest trading session, marking a -0.27% move from the prior day. This move lagged the S&P 500's daily gain of 0.81%. Meanwhile, the Dow experienced a rise of 0.39%, and the technology-dominated Nasdaq saw an increase of 1.35%.
Heading into today, shares of the wireless communications infrastructure company had lost 12.37% over the past month, lagging the Finance sector's loss of 6.45% and the S&P 500's loss of 6.19% in that time.
The investment community will be paying close attention to the earnings performance of American Tower in its upcoming release. The company's earnings per share (EPS) are projected to be $2.18, reflecting a 7.63% decrease from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $2.76 billion, indicating a 3.15% upward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $9.72 per share and revenue of $11.05 billion, indicating changes of -0.41% and +3.18%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for American Tower. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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. Within the past 30 days, our consensus EPS projection has moved 0.02% lower. At present, American Tower boasts a Zacks Rank of #3 (Hold).
In terms of valuation, American Tower is currently trading at a Forward P/E ratio of 16.27. This indicates a premium in contrast to its industry's Forward P/E of 9.79.
Also, we should mention that AMT has a PEG ratio of 1.17. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The REIT and Equity Trust - Other was holding an average PEG ratio of 2.11 at yesterday's closing price.
The REIT and Equity Trust - Other industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 181, positioning it in the bottom 29% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.