American Tower (AMT) ended the recent trading session at $172.98, demonstrating a -1.4% change from the preceding day's closing price. This move lagged the S&P 500's daily loss of 0.59%. Meanwhile, the Dow experienced a drop of 0.6%, and the technology-dominated Nasdaq saw a decrease of 0.65%.
Shares of the wireless communications infrastructure company have appreciated by 2.93% over the course of the past month, outperforming the Finance sector's loss of 1.37%, and the S&P 500's loss of 1.37%.
The upcoming earnings release of American Tower will be of great interest to investors. It is anticipated that the company will report an EPS of $2.82, marking a 1.44% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $2.77 billion, showing a 2.06% escalation compared to the year-ago quarter.
AMT's full-year Zacks Consensus Estimates are calling for earnings of $11.07 per share and revenue of $11.04 billion. These results would represent year-over-year changes of +2.88% and +3.68%, respectively.
Investors should also pay attention to any latest changes in analyst estimates for American Tower. These revisions help to show the ever-changing nature of near-term business trends. 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 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.2% higher. Right now, American Tower possesses a Zacks Rank of #3 (Hold).
In terms of valuation, American Tower is currently trading at a Forward P/E ratio of 15.85. This valuation marks a premium compared to its industry average Forward P/E of 12.52.
Investors should also note that AMT has a PEG ratio of 2.75 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the REIT and Equity Trust - Other industry was having an average PEG ratio of 2.33.
The REIT and Equity Trust - Other industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 94, placing it within the top 39% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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This article originally published on Zacks Investment Research (zacks.com).