American Tower in upward trend ahead of...

Rick Pendergraft

published in Blogs

Oct 23, 2019

American Tower in upward trend ahead of earnings

Cellular tower REIT American Tower (NYSE: AMT) has been in a strong upward trend over the past year with the trajectory of the rally becoming steeper in 2019. Now the company is set to release third quarter earnings results on October 31 and investors are hoping the rally can continue.

Analysts expect American Tower to report earnings of $0.95 per share on the quarter with revenue coming in at $1.87 billion. In the third quarter of 2018, the company earned $0.83 on revenue of $1.79 billion. This reflects earnings growth expectations of 14.5% and expected revenue growth of 4.9%. Over the last three years the company has seen earnings grow by 21% per year while revenue has grown by 13%. In the second quarter the company saw EPS grow by 7% and revenue grew by 6%. The return on equity for American Tower is 21.4% and the profit margin is 15.5%.

When we add all of this fundamental data up, we get different ratings for how the company is doing compared to other companies. In American Tower’s case, they are doing well in most fundamental categories.

The Tickeron Profit vs. Risk Rating for American Tower is 2, indicating low risk on high returns. The average Profit vs. Risk Rating for the industry is 61, placing this stock better than average.

The PE Growth Rating for AMT is 32, pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents. A rating of 1 indicates highest PE growth while a rating of 100 indicates lowest PE growth.

The Tickeron SMR rating for this company is 37, indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents.

The one area of concern from the fundamental analysis is the Valuation Rating of 99. It indicates that the company is significantly overvalued in the industry. A rating of 1 points to the most undervalued stocks, while a rating of 100 points to the most overvalued stocks. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization.

Looking at the weekly chart for American Tower we see that the stock has been trading above its 13-week moving average since last October. That is an impressive run, especially considering the volatility we have seen in the overall market for the past year.

The overbought/oversold indicators are in the upper half of their range, but neither is in overbought territory. We see that the weekly stochastic readings haven’t been below the 50 level since June 2018. The 10-week RSI hasn’t been below the 5o level since October of last year. Neither of the indicators has been in oversold territory in the last three and a half years.

Despite the incredible performance from the company and the stock, analysts are more bearish toward the stock than the average stock. There are 18 analysts covering the stock and only six rank the stock as a “buy”. There are 11 “hold” ratings and one “sell” rating. This puts the buy percentage at 33% and that is well below the average range of 65% to 75%.

The short interest for American Tower is at 2.3 currently. This reading is a little below average and reflects a slight bullish skew from short sellers.

Given the overall picture for American Tower, there is very little to suggest that the rally will end once the earnings are released next week.

Related Tickers: AMT

Sergey Savastiouk

published in Blogs

Mar 07, 2021

4 Tricks Hedge Funds Use to Get Ahead

If the stock market were Major League Baseball, hedge funds and institutional investors would be the pros on championship teams while everyday self-directed investors (SDIs) are the benchwarmers in the minors.It’s how they get ahead, and it’s why 90% of SDIs lose money trying to play (invest and trade) in the major leagues. The 4 tricks we discuss below are rooted in one common theme: they all use Artificial Intelligence and algorithms to generate data and ideas.

John Jacques

published in Blogs

Mar 22, 2018

A.I. Stock Market Predictions: Head & Shoulders

Statistics for the Head-and-Shoulders Bottom Pattern The days where only hedge funds used algorithms to trade stocks are officially over. Now retail investors can use Artificial Intelligence (A.I. Here’s an example of the algorithm in action: Late last year, Tickeron’s A.I.

Sergey Savastiouk

published in Blogs

Jul 10, 2020

3 Stocks to Buy if Coronavirus Second Wave Hits

By analyzing market trends from the first wave, you can predict behavior for the second. Technology stocks have performed at historic levels this year, but the market is severely overbought.To compensate for that, look at performance during Q1 and Q2, the height of global Covid shutdowns.

Edward Flores

published in Blogs

Feb 06, 2021

How to Become the Millionaire Next Door

The Golden Gate Bridge is always a fixture of these walks too, one of man's most beautiful creations. As we were walking, at one point she turned to me and said, "Man, I'll never have a million dollars."" My girlfriend is 27 years old and works as a graphic designer, making about $75,000 a year.

Alla Petriaieva

published in Blogs

Feb 23, 2021

Is Ethereum’s Bomb about to Explode?

Ethereum’s software is set for an update in October.Until it is finished, participants in the Ethereum blockchain must determine how to delay the difficulty bomb – code that necessitates a steadily increasing amount of computer power to mine blocks and unlock rewards – that is already in place.

Sergey Savastiouk

published in Blogs

Aug 07, 2018

When Is the Next Recession Coming?

However, we also know that economists predicted 22 recessions out of 11 that took place since 1945. Are there real recession signs we should watch for?Indeed, the answer is yes, and here are a few very important ones: The first one is almost obvious and known to everyone – it is the Fed.

Abhoy Sarkar

published in Blogs

May 22, 2020

Central banks have been buying $2.4 billion in assets every hour for the past two months

Some $17.8 billion has been poured into bond markets over the past week, the biggest move in more than three months.Around $3.5 billion has been invested into gold, the second largest on record.

Rick Pendergraft

published in Blogs

Feb 07, 2021

Mid-January Short Interest Report Shows 8 Stocks with Good Fundamentals and High Short Interest

Sergey Savastiouk

published in Blogs

Mar 10, 2021

How to Start Trading Penny Stocks

Penny stocks have long been marginalized within the professional investment community, oftentimes being painted with a broad brush of simply being “too risky.” Leonardo DiCaprio’s depiction of the penny stock peddling conman, Jordan Belfort, in the Wolf of Wall Street certainly didn’t help.Here are four reasons to start trading them now. Reason #1: Let’s State the Obvious -- Penny Stocks are Cheap A single share of Apple Inc. costs over $350.

Abhoy Sarkar

published in Blogs

May 08, 2020

US unemployment rate jumps to 14.7%, the highest in series history

The U.S. economy’s employment fell by -20.5 million in April. The coronavirus crisis led to unemployment rate soaring to 14.7% in the U.S, the highest rate in the Bureau of Labor Statistics-tracked series history that goes back to 1948. However, the figures were better compared to several economists'/analysts' forecasts of 22 million job losses and 16% unemployment rate. Another unemployment measure that includes those who have stopped looking for work as well as those holding part-time jobs for economic reasons also touched an all-time high of 22.8%.