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American Tower (AMT) Stock Sinks As Market Gains: Here's Why

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American Tower (AMT - Free Report) closed the latest trading day at $232.31, indicating a -1.54% change from the previous session's end. The stock's performance was behind the S&P 500's daily gain of 1.7%. Meanwhile, the Dow gained 1.26%, and the Nasdaq, a tech-heavy index, added 2.51%.

The the stock of wireless communications infrastructure company has risen by 7.5% in the past month, leading the Finance sector's gain of 2.47% and the S&P 500's gain of 1.27%.

Investors will be eagerly watching for the performance of American Tower in its upcoming earnings disclosure. In that report, analysts expect American Tower to post earnings of $2.59 per share. This would mark year-over-year growth of 0.39%. Alongside, our most recent consensus estimate is anticipating revenue of $2.82 billion, indicating a 0.2% upward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $10.50 per share and a revenue of $11.22 billion, demonstrating changes of +6.38% and +0.71%, respectively, from the preceding year.

It's also important for investors to be aware of any recent modifications to analyst estimates for American Tower. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, 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 past month, the Zacks Consensus EPS estimate has shifted 0.34% downward. American Tower currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, American Tower is holding a Forward P/E ratio of 22.48. This valuation marks a premium compared to its industry's average Forward P/E of 13.19.

We can additionally observe that AMT currently boasts a PEG ratio of 1.04. 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. As of the close of trade yesterday, the REIT and Equity Trust - Other industry held an average PEG ratio of 2.48.

The REIT and Equity Trust - Other industry is part of the Finance sector. This group has a Zacks Industry Rank of 89, putting it in the top 36% 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.

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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