Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a momo momentum candidate. In addition to specific proprietary factors, Trade-Ideas identified American Tower as such a stock due to the following factors:
- AMT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $171.3 million.
- AMT has a PE ratio of 54.2.
- AMT is currently in the upper 30% of its 1-year range.
- AMT is in the upper 25% of its 20-day range.
- AMT is in the upper 35% of its 5-day range.
- AMT is currently trading above yesterday's high.
- AMT has experienced a gap between today's open and yesterday's close of 1.7%.
'Momo Momentum' stocks are valuable stocks to watch for a variety of reasons including historical back testing and price action. Market technicians refer to such stocks as being in a mark-up phase before a possible distribution period and price decline. Technical analysts and traders frequently find that the factors referenced above tend to create a temporary burst of strong wind in a stock's sail. Nevertheless, all successful traders must excel at maximizing gains while keeping losses to an absolute minimum. For that reason, the holding period on momo momentum stocks must always be a primary consideration, and this part of the puzzle is ultimately at the discretion of each individual's risk tolerance and portfolio risk management skills.
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More details on AMT:
American Tower Corporation is a real estate investment trust. It invests in the real estate markets across the globe. The firm through its subsidiaries owns, operates and develops wireless and broadcast communications real estate. The stock currently has a dividend yield of 1.5%. AMT has a PE ratio of 54.2. Currently there are 11 analysts that rate American Tower a buy, no analysts rate it a sell, and 1 rates it a hold.
The average volume for American Tower has been 2.0 million shares per day over the past 30 days. American Tower has a market cap of $38.2 billion and is part of the financial sector and real estate industry. The stock has a beta of 0.17 and a short float of 1.2% with 2.59 days to cover. Shares are up 19.1% year-to-date as of the close of trading on Wednesday.
rates American Tower as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, increase in net income, good cash flow from operations and growth in earnings per share. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 12.2%. Since the same quarter one year prior, revenues rose by 27.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Real Estate Investment Trusts (REITs) industry. The net income increased by 134.8% when compared to the same quarter one year prior, rising from $99.82 million to $234.43 million.
- Net operating cash flow has significantly increased by 52.57% to $595.80 million when compared to the same quarter last year. In addition, AMERICAN TOWER CORP has also vastly surpassed the industry average cash flow growth rate of -24.40%.
- AMERICAN TOWER CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, AMERICAN TOWER CORP reported lower earnings of $1.38 versus $1.60 in the prior year. This year, the market expects an improvement in earnings ($2.26 versus $1.38).
- You can view the full American Tower Ratings Report.