In the latest trading session, American Tower (AMT) closed at $192.87, marking a -0.14% move from the previous day. This change was narrower than the S&P 500’s 0.16% loss on the day. Meanwhile, the Dow lost 0.12%, and the Nasdaq, a tech-heavy index, lost 3.64%.
Prior to today’s trading, shares of the wireless communications infrastructure company had lost 0.99% over the past month. This has was narrower than the Finance sector’s loss of 7.8% and lagged the S&P 500’s gain of 0.07% in that time.
Wall Street will be looking for positivity from American Tower as it approaches its next earnings report date. The company is expected to report EPS of $2.42, down 5.1% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.74 billion, up 3.12% from the prior-year quarter.
AMT’s full-year Zacks Consensus Estimates are calling for earnings of $9.80 per share and revenue of $11.03 billion. These results would represent year-over-year changes of +0.41% and +3%, respectively.
It is also important to note the 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 0.33% higher. American Tower is currently a Zacks Rank #3 (Hold).
In terms of valuation, American Tower is currently trading at a Forward P/E ratio of 19.72. This represents a premium compared to its industry’s average Forward P/E of 10.7.
Also, we should mention that AMT has a PEG ratio of 1.92. 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 2.21 as of yesterday’s close.
The REIT and Equity Trust – Other industry is part of the Finance sector. This group has a Zacks Industry Rank of 143, putting it in the bottom 44% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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