American Tower (AMT) Sees a More Significant Dip Than Broader Market: Some Facts to Know

American Tower (AMT) ended the recent trading session at $168.72, demonstrating a -3.29% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a loss of 0.01% for the day. On the other hand, the Dow registered a gain of 0.14%, and the technology-centric Nasdaq decreased by 0.46%. Heading into today, shares of the wireless communications infrastructure company had lost 5.69% over the past month, lagging the Finance sector's gain of 2.29% and the S&P 500's loss of 1.4%.Market participants will be closely following the financial results of American Tower in its upcoming release. The company is forecasted to report an EPS of $2.69, showcasing a 3.46% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $2.71 billion, indicating a 3.09% increase compared to the same quarter of the previous year. AMT's full-year Zacks Consensus Estimates are calling for earnings of $10.97 per share and revenue of $10.91 billion. These results would represent year-over-year changes of +1.95% and +2.53%, respectively. It is also important to note the recent changes to analyst estimates for American Tower. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook. Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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 remained steady. American Tower is currently a Zacks Rank #3 (Hold). From a valuation perspective, American Tower is currently exchanging hands at a Forward P/E ratio of 15.9. This expresses a premium compared to the average Forward P/E of 13.2 of its industry. Also, we should mention that AMT has a PEG ratio of 0.71. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The REIT and Equity Trust - Other industry had an average PEG ratio of 2.49 as trading concluded yesterday. The REIT and Equity Trust - Other industry is part of the Finance sector. With its current Zacks Industry Rank of 82, this industry ranks in the top 34% 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. Beyond Nvidia: AI's Second Wave Is HereThe AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.See Stocks Now >>This article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks