American Tower (AMT) tops stock market gains: What you need to know – June 17, 2022

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American Tower (AMT Free Report) closed at $236.17 in the last trading session, marking a +0.85% move from the previous day. The stock topped the S&P 500 daily gain of 0.22%. Elsewhere, the Dow Jones lost 0.13%, while the tech-heavy Nasdaq added 0.26%.

As of today, shares of the wireless communications infrastructure company have gained 0.4% in the past month. Meanwhile, the financials sector lost 7.38%, while the S&P 500 lost 8.32%.

Investors are hoping for strength from American Tower as it approaches its next earnings release. The company is expected to post EPS of $2.45, up 1.24% from the prior year quarter. Our most recent consensus estimate calls for quarterly revenue of $2.65 billion, up 15.23% from the prior year period.

Zacks consensus estimates for AMT’s full year call for earnings of $10.02 per share and revenue of $10.67 billion. These results would represent year-over-year variations of +3.83% and +14.08%, respectively.

Investors should also note any recent changes to analyst estimates for American Tower. Recent revisions tend to reflect the latest short-term trading trends. Therefore, we can interpret positive estimate revisions as a good sign for the company’s business outlook.

Research indicates that these revisions to estimates are directly correlated to near-term stock price dynamics. To benefit from this, we have developed the Zacks Rank, a proprietary model that takes into account these estimation changes and provides an actionable rating system.

The Zacks ranking system ranges from #1 (strong buy) to #5 (strong sell). It has a remarkable track record of third-party audited success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has risen 0.4% . American Tower currently sports a Zacks rank of #3 (Hold).

Valuation is also important, so investors should note that American Tower has a Forward P/E ratio of 23.38 at this time. Its industry sports an average Forward P/E of 12.25, so we could conclude that American Tower is trading at a premium comparatively.

Investors should also note that AMT has a PEG ratio of 2.2 at this time. This measure is used in the same way as the famous P/E ratio, but the PEG ratio also takes into account the growth rate of the stock’s expected earnings. REIT and Equity Trust – Other stocks hold an average PEG ratio of 2.19 based on yesterday’s closing prices.

The REITs and Equity Trusts – Other segment is part of the Finance segment. This industry currently has a Zacks Industry Rank of 146, which places it in the bottom 43% of all 250+ industries.

The Zacks Industry Rankings are ranked from best to worst in terms of the average Zacks Ranking of individual companies in each of these industries. Our research shows that the top 50% of industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to track all of these stock movement metrics, and more, in future trading sessions.

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