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In the latest trading session, American Tower (AMT) closed at $179.19, marking a +1.14% move from the previous day. The stock exceeded the S&P 500, which registered a gain of 0.16% for the day. At the same time, the Dow added 0.25%, and the tech-heavy Nasdaq lost 0.06%.
Heading into today, shares of the wireless communications infrastructure company had lost 11.21% over the past month, lagging the Finance sector's loss of 4.35% and the S&P 500's loss of 2.8% in that time.
The upcoming earnings release of American Tower will be of great interest to investors. In that report, analysts expect American Tower to post earnings of $2.33 per share. This would mark year-over-year growth of 1.75%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.51 billion, down 9.75% from the year-ago period.
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 company's business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.51% decrease. American Tower is currently a Zacks Rank #4 (Sell).
Valuation is also important, so investors should note that American Tower has a Forward P/E ratio of 16.98 right now. This valuation marks a premium compared to its industry's average Forward P/E of 11.31.
It is also worth noting that AMT currently has a PEG ratio of 1.14. 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 1.93 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 143, which puts it in the bottom 44% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.