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 "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) 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 $255.5 million.
- AMT has traded 1.8 million shares today.
- AMT traded in a range 283.2% of the normal price range with a price range of $4.25.
- AMT traded below its daily resistance level (quality: 13 days, meaning that the stock is crossing a resistance level set by the last 13 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Water-Logged and Getting Wetter' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.
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More details on AMT:
American Tower Corporation, a real estate investment trust, operates as a wireless and broadcast communications infrastructure company. It develops, owns, and operates communications sites. The stock currently has a dividend yield of 1.5%. AMT has a PE ratio of 46.2. Currently there are 16 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 4.1 million shares per day over the past 30 days. American Tower has a market cap of $29.2 billion and is part of the financial sector and real estate industry. The stock has a beta of 0.23 and a short float of 1.7% with 1.89 days to cover. Shares are down 4.3% 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, notable return on equity, impressive record of earnings per share growth, compelling growth in net income and good cash flow from operations. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.
Highlights from the ratings report include:
- AMT's revenue growth has slightly outpaced the industry average of 10.7%. Since the same quarter one year prior, revenues rose by 15.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market, AMERICAN TOWER CORP's return on equity exceeds that of both the industry average and the S&P 500.
- AMERICAN TOWER CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, AMERICAN TOWER CORP increased its bottom line by earning $1.60 versus $1.00 in the prior year. This year, the market expects an improvement in earnings ($1.77 versus $1.60).
- 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 107.1% when compared to the same quarter one year prior, rising from $48.21 million to $99.82 million.
- Net operating cash flow has slightly increased to $390.49 million or 8.21% when compared to the same quarter last year. In addition, AMERICAN TOWER CORP has also modestly surpassed the industry average cash flow growth rate of 5.48%.
- You can view the full American Tower Ratings Report.