In the latest trading session, American Tower (AMT) closed at $181.09, marking a -1.83% move from the previous day. The stock's performance was behind the S&P 500's daily loss of 1.22%. Elsewhere, the Dow saw a downswing of 0.98%, while the tech-heavy Nasdaq depreciated by 1.35%.
Shares of the wireless communications infrastructure company witnessed a gain of 0.8% over the previous month, trailing the performance of the Finance sector with its gain of 5.2%, and the S&P 500's gain of 1.56%.
Analysts and investors alike will be keeping a close eye on the performance of American Tower in its upcoming earnings disclosure. In that report, analysts expect American Tower to post earnings of $2.69 per share. This would mark year-over-year growth of 3.46%. Meanwhile, our latest consensus estimate is calling for revenue of $2.71 billion, up 3.09% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $10.95 per share and a revenue of $10.91 billion, signifying shifts of +1.77% and +2.53%, respectively, from the last year.
Investors should also note any recent changes to analyst estimates for American Tower. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. American Tower is holding a Zacks Rank of #3 (Hold) right now.
Looking at valuation, American Tower is presently trading at a Forward P/E ratio of 16.85. This represents a premium compared to its industry average Forward P/E of 12.98.
Also, we should mention that AMT has a PEG ratio of 0.75. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The REIT and Equity Trust - Other industry had an average PEG ratio of 2.5 as trading concluded yesterday.
The REIT and Equity Trust - Other industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 76, positioning it in the top 32% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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American Tower Corporation (AMT): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).