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American Tower (AMT) Outperforms Broader Market: What You Need to Know

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In the latest trading session, American Tower (AMT - Free Report) closed at $200.41, marking a +1.75% move from the previous day. The stock's change was more than the S&P 500's daily gain of 0.15%. On the other hand, the Dow registered a gain of 0.36%, and the technology-centric Nasdaq increased by 0.17%.

Shares of the wireless communications infrastructure company have appreciated by 10.23% over the course of the past month, outperforming the Finance sector's gain of 2.64% and the S&P 500's gain of 3.2%.

Market participants will be closely following the financial results of American Tower in its upcoming release. The company is forecasted to report an EPS of $2.53, showcasing a 2.85% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $2.8 billion, reflecting a 1.2% rise from the equivalent quarter last year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $10.39 per share and revenue of $11.18 billion, indicating changes of +5.27% and +0.33%, respectively, compared to the previous year.

Investors should also take note of any recent adjustments to analyst estimates for American Tower. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.14% upward. American Tower is currently sporting a Zacks Rank of #2 (Buy).

Investors should also note American Tower's current valuation metrics, including its Forward P/E ratio of 18.95. This valuation marks a premium compared to its industry's average Forward P/E of 11.47.

We can also see that AMT currently has a PEG ratio of 1.36. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. REIT and Equity Trust - Other stocks are, on average, holding a PEG ratio of 2.35 based on yesterday's closing prices.

The REIT and Equity Trust - Other industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 164, which puts it in the bottom 35% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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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