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American Tower (AMT) Rises Higher Than Market: Key Facts

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American Tower (AMT - Free Report) closed the latest trading day at $192.78, indicating a +0.26% change from the previous session's end. The stock outperformed the S&P 500, which registered a daily gain of 0.25%. On the other hand, the Dow registered a gain of 0.15%, and the technology-centric Nasdaq increased by 0.03%.

The the stock of wireless communications infrastructure company has risen by 0.27% in the past month, leading the Finance sector's loss of 2.3% and undershooting the S&P 500's gain of 3.34%.

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 $2.53, up 2.85% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $2.8 billion, indicating a 1.2% upward movement from the same quarter last year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $10.44 per share and revenue of $11.18 billion, indicating changes of +5.78% 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 recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. The Zacks Consensus EPS estimate has moved 0.46% higher within the past month. Currently, American Tower is carrying a Zacks Rank of #3 (Hold).

In terms of valuation, American Tower is presently being traded at a Forward P/E ratio of 18.42. For comparison, its industry has an average Forward P/E of 11.61, which means American Tower is trading at a premium to the group.

One should further note that AMT currently holds a PEG ratio of 1.32. 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. REIT and Equity Trust - Other stocks are, on average, holding a PEG ratio of 2.21 based on yesterday's closing prices.

The REIT and Equity Trust - Other industry is part of the Finance sector. With its current Zacks Industry Rank of 170, this industry ranks in the bottom 33% of all industries, numbering over 250.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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