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

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In the latest trading session, American Tower (AMT - Free Report) closed at $255.92, marking a +0.17% move from the previous day. This move outpaced the S&P 500's daily loss of 0.45%. Elsewhere, the Dow lost 0.67%, while the tech-heavy Nasdaq lost 0.06%.

Prior to today's trading, shares of the wireless communications infrastructure company had gained 8.96% over the past month. This has outpaced the Finance sector's loss of 3.17% and the S&P 500's loss of 1.89% in that time.

Investors will be hoping for strength from American Tower as it approaches its next earnings release, which is expected to be July 28, 2022. In that report, analysts expect American Tower to post earnings of $2.43 per share. This would mark year-over-year growth of 0.41%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.65 billion, up 15.23% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $9.92 per share and revenue of $10.67 billion, which would represent changes of +2.8% and +14.09%, respectively, from the prior year.

Any recent changes to analyst estimates for American Tower should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Within the past 30 days, our consensus EPS projection has moved 0.25% higher. American Tower currently has a Zacks Rank of #3 (Hold).

Investors should also note American Tower's current valuation metrics, including its Forward P/E ratio of 25.75. Its industry sports an average Forward P/E of 12.62, so we one might conclude that American Tower is trading at a premium comparatively.

We can also see that AMT currently has a PEG ratio of 2.43. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The REIT and Equity Trust - Other was holding an average PEG ratio of 2.37 at yesterday's closing price.

The REIT and Equity Trust - Other industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 75, which puts it in the top 30% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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