American Tower (AMT) closed at $208.18 in the latest trading session, marking a -0.31% move from the prior day. This move lagged the S&P 500's daily gain of 0.09%. Meanwhile, the Dow lost 0.03%, and the Nasdaq, a tech-heavy index, lost 2.51%.
Prior to today's trading, shares of the wireless communications infrastructure company had gained 3.41% over the past month. This has lagged the Finance sector's gain of 6.72% and the S&P 500's gain of 6.17% in that time.
Wall Street will be looking for positivity from American Tower as it approaches its next earnings report date. This is expected to be April 26, 2023. The company is expected to report EPS of $2.42, down 5.1% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.74 billion, up 3.12% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.80 per share and revenue of $11.03 billion. These totals would mark changes of +0.41% and +3%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for American Tower. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.17% higher. American Tower is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note American Tower's current valuation metrics, including its Forward P/E ratio of 21.32. Its industry sports an average Forward P/E of 10.92, so we one might conclude that American Tower is trading at a premium comparatively.
We can also see that AMT currently has a PEG ratio of 1.9. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The REIT and Equity Trust - Other was holding an average PEG ratio of 2.28 at yesterday's closing price.
The REIT and Equity Trust - Other industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 110, which puts it in the top 44% of all 250+ industries.
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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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