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American Tower (AMT) Exceeds Market Returns: Some Facts to Consider

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In the latest trading session, American Tower (AMT - Free Report) closed at $181.55, marking a +2.29% move from the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.26%. Elsewhere, the Dow saw an upswing of 0.6%, while the tech-heavy Nasdaq appreciated by 0.25%.

The wireless communications infrastructure company's stock has dropped by 0.57% in the past month, falling short of the Finance sector's gain of 0.62% and the S&P 500's gain of 1.57%.

The investment community will be closely monitoring the performance of American Tower in its forthcoming earnings report. The company is predicted to post an EPS of $2.54, indicating a 9.48% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $2.67 billion, up 4.76% from the year-ago period.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $10.67 per share and revenue of $10.57 billion. These totals would mark changes of +1.23% and 0%, respectively, from last year.

It's also important for investors to be aware of any recent modifications to analyst estimates for American Tower. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.14% downward. American Tower is currently sporting a Zacks Rank of #4 (Sell).

Investors should also note American Tower's current valuation metrics, including its Forward P/E ratio of 15.9. Its industry sports an average Forward P/E of 11.38, so one might conclude that American Tower is trading at a premium comparatively.

Meanwhile, AMT's PEG ratio is currently 0.69. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. AMT's industry had an average PEG ratio of 2.6 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 105, which puts it in the top 43% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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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