American Tower AMT shares rallied 4.1% in the last trading session to close at $175.59. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 9.6% loss over the past four weeks.
The increased investor optimism in the stock can be attributed to the broader market sentiment.
This wireless communications infrastructure company is expected to post quarterly funds from operations (FFO) of $2.69 per share in its upcoming report, which represents a year-over-year change of +3.5%. Revenues are expected to be $2.71 billion, up 3.1% from the year-ago quarter.
FFO and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in FFO estimate revisions are strongly correlated with near-term stock price movements.
For American Tower, the consensus estimate for FFO per share for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in FFO estimate revisions. So, make sure to keep an eye on AMT going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
American Tower is part of the Zacks REIT and Equity Trust - Other industry. Alexandria Real Estate Equities ARE, another stock in the same industry, closed the last trading session 3.6% higher at $55.22. ARE has returned 6.5% in the past month.
For Alexandria Real Estate Equities, the consensus estimate for FFO per share for the upcoming report has remained unchanged over the past month at $1.64. This represents a change of -29.6% from what the company reported a year ago. Alexandria Real Estate Equities currently has a Zacks Rank of #3 (Hold).
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American Tower Corporation (AMT): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).