American Tower (AMT) Stock Drops Despite Market Gains: Important Facts to Note

Core Viewpoint - American Tower (AMT) is experiencing a mixed performance in the market, with a recent stock price of $184.13, reflecting a slight decline compared to the previous day, while upcoming earnings are anticipated to show a modest increase in EPS but a decrease in revenue [1][2]. Company Performance - AMT's stock price decreased by 0.67% in the latest market close, underperforming the S&P 500's gain of 0.72% [1]. - Over the past month, AMT shares have increased by 2.83%, which is lower than the Finance sector's gain of 3.24% but higher than the S&P 500's gain of 1.02% [1]. Upcoming Earnings - American Tower is set to announce its earnings on February 25, 2025, with an expected EPS of$ 2.33, representing a 1.75% increase from the same quarter last year [2]. - Revenue is forecasted to be $2.51 billion, indicating a 9.75% decrease compared to the previous year [2]. Analyst Estimates - Recent changes to analyst estimates for AMT reflect confidence in the company's business performance and profit potential [3]. - The Zacks Consensus EPS estimate has decreased by 0.12% over the past month, and AMT currently holds a Zacks Rank of 4 (Sell) [5]. Valuation Metrics - AMT is trading at a Forward P/E ratio of 17.79, which is higher than the industry average of 11.47, suggesting a premium valuation [6]. - The company has a PEG ratio of 1.19, compared to the industry average PEG ratio of 2.15, indicating a more favorable growth expectation relative to its price [7]. Industry Context - The REIT and Equity Trust - Other industry, which includes AMT, is ranked 158 in the Zacks Industry Rank, placing it in the bottom 38% of over 250 industries [8].