In the latest trading session, American Tower (AMT) closed at $177.64, marking a -3.23% move from the previous day. The stock's performance was behind the S&P 500's daily gain of 0.58%. Meanwhile, the Dow gained 0.69%, and the Nasdaq, a tech-heavy index, added 1.05%.
Coming into today, shares of the wireless communications infrastructure company had gained 4.74% in the past month. In that same time, the Finance sector lost 1.58%, while the S&P 500 gained 0.97%.
The investment community will be paying close attention to the earnings performance of American Tower in its upcoming release. The company is slated to reveal its earnings on October 27, 2026. In that report, analysts expect American Tower to post earnings of $2.84 per share. This would mark year-over-year growth of 2.16%. Meanwhile, our latest consensus estimate is calling for revenue of $2.77 billion, up 2.06% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $11.11 per share and revenue of $11.04 billion, which would represent changes of +3.25% and +3.68%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for American Tower. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. American Tower is holding a Zacks Rank of #2 (Buy) right now.
In the context of valuation, American Tower is at present trading with a Forward P/E ratio of 16.53. Its industry sports an average Forward P/E of 11.66, so one might conclude that American Tower is trading at a premium comparatively.
We can additionally observe that AMT currently boasts a PEG ratio of 2.86. 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 had an average PEG ratio of 2 as trading concluded yesterday.
The REIT and Equity Trust - Other industry is part of the Finance sector. With its current Zacks Industry Rank of 85, this industry ranks in the top 35% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the 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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American Tower Corporation (AMT): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).