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American Tower (AMT) Falls More Steeply Than Broader Market: What Investors Need to Know
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American Tower (AMT - Free Report) closed at $167.26 in the latest trading session, marking a -2.06% move from the prior day. This change lagged the S&P 500's 0.03% loss on the day. Meanwhile, the Dow lost 0.31%, and the Nasdaq, a tech-heavy index, added 0.01%.
The wireless communications infrastructure company's stock has dropped by 2.82% in the past month, exceeding the Finance sector's loss of 2.98% and lagging the S&P 500's gain of 0.53%.
The investment community will be closely monitoring the performance of American Tower in its forthcoming earnings report. The company is expected to report EPS of $2.84, up 2.16% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $2.77 billion, showing a 2.06% escalation compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $11.11 per share and revenue of $11.04 billion. These totals would mark changes of +3.25% and +3.68%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for American Tower. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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, there's been no change in the Zacks Consensus EPS estimate. American Tower presently features a Zacks Rank of #3 (Hold).
With respect to valuation, American Tower is currently being traded at a Forward P/E ratio of 15.38. This denotes a premium relative to the industry average Forward P/E of 11.99.
Investors should also note that AMT has a PEG ratio of 2.67 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The REIT and Equity Trust - Other industry currently had an average PEG ratio of 2.29 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 103, which puts it in the top 42% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
View the Zacks #1 Rank List
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American Tower (AMT) Falls More Steeply Than Broader Market: What Investors Need to Know
American Tower (AMT - Free Report) closed at $167.26 in the latest trading session, marking a -2.06% move from the prior day. This change lagged the S&P 500's 0.03% loss on the day. Meanwhile, the Dow lost 0.31%, and the Nasdaq, a tech-heavy index, added 0.01%.
The wireless communications infrastructure company's stock has dropped by 2.82% in the past month, exceeding the Finance sector's loss of 2.98% and lagging the S&P 500's gain of 0.53%.
The investment community will be closely monitoring the performance of American Tower in its forthcoming earnings report. The company is expected to report EPS of $2.84, up 2.16% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $2.77 billion, showing a 2.06% escalation compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $11.11 per share and revenue of $11.04 billion. These totals would mark changes of +3.25% and +3.68%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for American Tower. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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, there's been no change in the Zacks Consensus EPS estimate. American Tower presently features a Zacks Rank of #3 (Hold).
With respect to valuation, American Tower is currently being traded at a Forward P/E ratio of 15.38. This denotes a premium relative to the industry average Forward P/E of 11.99.
Investors should also note that AMT has a PEG ratio of 2.67 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The REIT and Equity Trust - Other industry currently had an average PEG ratio of 2.29 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 103, which puts it in the top 42% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.