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American Tower (AMT) Gains As Market Dips: What You Should Know

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The latest trading session saw American Tower (AMT - Free Report) ending at $179.20, denoting a +0.31% adjustment from its last day's close. The stock's change was more than the S&P 500's daily loss of 1.46%. Elsewhere, the Dow saw a downswing of 1.24%, while the tech-heavy Nasdaq depreciated by 1.63%.

The wireless communications infrastructure company's shares have seen a decrease of 10.32% over the last month, not keeping up with the Finance sector's loss of 3.74% and the S&P 500's gain of 1.6%.

The investment community will be closely monitoring the performance of American Tower in its forthcoming earnings report. The company is scheduled to release its earnings on April 30, 2024. In that report, analysts expect American Tower to post earnings of $2.56 per share. This would mark year-over-year growth of 0.79%. Meanwhile, our latest consensus estimate is calling for revenue of $2.8 billion, up 1.17% from the prior-year quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $10.38 per share and revenue of $11.27 billion. These totals would mark changes of +5.17% and +1.15%, 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.14% lower. American Tower is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, American Tower is presently being traded at a Forward P/E ratio of 17.21. This denotes a premium relative to the industry's average Forward P/E of 11.06.

We can also see that AMT currently has a PEG ratio of 1.2. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. REIT and Equity Trust - Other stocks are, on average, holding a PEG ratio of 2.21 based on yesterday's closing prices.

The REIT and Equity Trust - Other industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 97, placing it within the top 39% of over 250 industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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