American Tower (AMT) Surges 9.3%: Is This an Indication of Further Gains?

American Tower (AMT) shares ended the last trading session 9.3% higher at $182.24. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 3.6% loss over the past four weeks.

The increased investor optimism in the stock can be attributed to SpaceX’s spectrum acquisition deal, which could boost demand for terrestrial infrastructure and create future tower leasing opportunities for American Tower.

This wireless communications infrastructure company is expected to post quarterly FFO per share of $2.84 in its upcoming report, which represents a year-over-year change of +2.2%. Revenues are expected to be $2.77 billion, up 2.1% 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 FFO per share estimate 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 #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

American Tower is a member of the Zacks REIT and Equity Trust - Other industry. One other stock in the same industry, Getty Realty (GTY), finished the last trading session 0.1% lower at $27.86. GTY has returned -14.1% over the past month.

Getty Realty's consensus FFO per share estimate for the upcoming report has changed +1.6% over the past month to $0.63. Compared to the company's year-ago FFO per share, this represents a change of +1.6%. Getty Realty currently boasts a Zacks Rank of #3 (Hold).

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This article originally published on Zacks Investment Research (zacks.com).

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