American Tower Corporation (REIT) (NYSE:AMT) – Fast Growth Play with Potential Stock Upside

Shares of American Tower Corporation (REIT) (NYSE:AMT) have been experiencing an accelerated earnings and sales growth over the past 5 years.  Over that time frame the firm has seen earnings growth of 10.50% and sales growth of 18.30%.

Investors will most likely make plenty of mistakes when dealing with the equity market. Learning from these mistakes is what will propel the individual forward. Those who don’t learn from their mistakes are destined to repeat, and failure might be right around the corner. Every investor strives to spot that uncovered stock before it explodes. However, chasing returns from big winners that have already made their moves may end up leaving the investor befuddled. Even though a stock has been hot, there is no guarantee that it will stay hot. Many investors may get stock tips from friends or colleagues. Of course the tips may be legitimate, but they could just be irrelevant. When it comes to stock picking strategies, investors might be best served to make sure that they have done the actual research themselves. Making trades based on tips or rumors may place the investor in a tough spot for future market success. 

While the firm has enjoyed the upward movement, it’s important to look at analyst expectations and where the company is headed from here.  On a consensus basis, analysts are projecting EPS growth of 23.15% for next year and have a $170.16 one year price target on the stock.   The stock recently traded at $176.69.

Let’s take a look at how the stock has been performing recently.  Over the past twelve months, American Tower Corporation (REIT) (NYSE:AMT)‘s stock was 11.69%.  Over the last week of the month, it was 2.38%, 8.98% over the last quarter, and  16.88% for the past six months. 

Earnings Per Share (EPS):

When a company shows a steady upwards earnings trend, it is a good indicator that the company will dominate companies with a more volatile earnings trend. American Tower Corporation (REIT) (NYSE:AMT)’s EPS is 2.61.  Last year, their EPS growth was 32.70% while their EPS growth over the past five years is 10.50%.  Analysts are predicting American Tower Corporation (REIT)’s stock to grow 23.15% over the next year and 12.10% over the next five.

Following all the swirling information about publically traded companies can be quite a task. Every day there may be new pieces of news that emerge about a specific company. The prudent investor is typically able to keep abreast of the information, but most importantly figure out what news is worth paying attention to, and what news should be filtered out. Keeping a sharp eye on earnings reports and fundamental company data can play a big part in picking the right stocks for the portfolio. Once the numbers have been crunched, investors should be able to see things a little bit clearer and know what the general feel for the stock is. Of course there will be stocks that look good after thorough examination but still fail to perform as expected. 

Nothing contained in this publication is intended to constitute legal, tax, securities, or investment advice, nor an opinion regarding the appropriateness of any investment, nor a solicitation of any type. The general information contained in this publication should not be acted upon without obtaining specific legal, tax, and investment advice from a licensed professional.

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