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 strong and under the radar 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 $177.0 million.
- AMT is making at least a new 3-day high.
- AMT has a PE ratio of 59.3.
- AMT is mentioned 1.00 times per day on StockTwits.
- AMT has not yet been mentioned on StockTwits today.
- AMT is currently in the upper 20% of its 1-year range.
- AMT is in the upper 35% of its 20-day range.
- AMT is in the upper 45% of its 5-day range.
- AMT is currently trading above yesterday's high.
'Strong and Under the Radar' stocks tend to be worthwhile stocks to watch for a variety of factors including historical back testing and price action. Market technicians refer to such stocks as being in an accumulation phase before a mark-up and peak. Traders and hedge funds have frequently found that these types of stocks continue to build a solid price base and then ultimately spike higher and peak when others 'discover' how good the stock is performing. By leveraging the social discovery aspect of StockTwits we are highlighting stocks that don't currently receive much attention from retail investors, but we suspect may soon garner more attention.
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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 1.6%. AMT has a PE ratio of 59.3. Currently there are 14 analysts that rate American Tower a buy, no analysts rate it a sell, and none rate it a hold.
The average volume for American Tower has been 2.3 million shares per day over the past 30 days. American Tower has a market cap of $31.9 billion and is part of the financial sector and real estate industry. The stock has a beta of 0.14 and a short float of 2% with 3.62 days to cover. Shares are up 1.1% year-to-date as of the close of trading on Thursday.
rates American Tower as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations, increase in stock price during the past year, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 6.8%. Since the same quarter one year prior, revenues rose by 22.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Net operating cash flow has significantly increased by 52.63% to $454.60 million when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 10.27%.
- Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. 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.
- AMERICAN TOWER CORP's earnings per share declined by 26.5% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over 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 ($2.15 versus $1.38).
- The gross profit margin for AMERICAN TOWER CORP is currently very high, coming in at 73.33%. Regardless of AMT's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, AMT's net profit margin of 10.61% is significantly lower than the industry average.
- You can view the full American Tower Ratings Report.