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

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American Tower (AMT - Free Report) closed the most recent trading day at $211.26, moving +0.42% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.41%. At the same time, the Dow lost 0.11%, and the tech-heavy Nasdaq lost 4.08%.

Prior to today's trading, shares of the wireless communications infrastructure company had gained 5.28% over the past month. This has outpaced the Finance sector's gain of 0.95% and lagged the S&P 500's gain of 6.51% in that time.

Investors will be hoping for strength from American Tower as it approaches its next earnings release, which is expected to be April 26, 2023. The company is expected to report EPS of $2.42, down 5.1% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $2.74 billion, up 3.12% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.80 per share and revenue of $11.03 billion. These totals would mark changes of +0.41% and +3%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for American Tower. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.17% higher. American Tower currently has a Zacks Rank of #3 (Hold).

In terms of valuation, American Tower is currently trading at a Forward P/E ratio of 21.48. Its industry sports an average Forward P/E of 10.92, so we one might conclude that American Tower is trading at a premium comparatively.

Also, we should mention that AMT has a PEG ratio of 1.91. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. REIT and Equity Trust - Other stocks are, on average, holding a PEG ratio of 2.26 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 100, which puts it in the top 40% 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.

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


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