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 $237.2 million.
- AMT has a PE ratio of 54.0.
- 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 0.6%.
'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 54.0. Currently there are 10 analysts that rate American Tower a buy, no analysts rate it a sell, and 2 rate it a hold.
The average volume for American Tower has been 2.1 million shares per day over the past 30 days. American Tower has a market cap of $39.2 billion and is part of the financial sector and real estate industry. The stock has a beta of 0.28 and a short float of 1.4% with 2.30 days to cover. Shares are up 0.8% year-to-date as of the close of trading on Friday.
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, solid stock price performance, 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 13.5%. Since the same quarter one year prior, revenues rose by 28.5%. This growth in revenue appears to have trickled down to the company's bottom line, improving 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.
- The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. 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.
- Net operating cash flow has increased to $497.22 million or 38.14% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 5.30%.
- AMERICAN TOWER CORP has improved earnings per share by 11.1% 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 ($2.12 versus $1.38).
- You can view the full American Tower Ratings Report.