Trade-Ideas LLC identified

American Tower

(

AMT

) as a "barbarian at the gate" (strong stocks crossing above resistance 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 $188.2 million.
  • AMT has traded 256,012 shares today.
  • AMT traded in a range 238.4% of the normal price range with a price range of $3.30.
  • AMT traded above its daily resistance level (quality: 328 days, meaning that the stock is crossing a resistance level set by the last 328 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).

Stocks matching the 'Barbarian at the Gate' 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 positive price action. In this case, the stock crossed an important inflection point; namely, 'resistance' while at the same time the range of the stock's movement in price is more than twice its normal size. This large range foreshadows a possible continuation as the stock moves higher.

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More details on AMT:

TheStreet Recommends

American Tower Corporation is a real estate investment trust. It invests in the real estate markets across the globe. The stock currently has a dividend yield of 1.9%. AMT has a PE ratio of 59. 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 2.3 million shares per day over the past 30 days. American Tower has a market cap of $42.0 billion and is part of the technology sector and telecommunications industry. The stock has a beta of 0.49 and a short float of 2.1% with 4.86 days to cover. Shares are up 2% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates American Tower as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins and increase in stock price during the past year. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:

  • AMT's revenue growth has slightly outpaced the industry average of 9.8%. Since the same quarter one year prior, revenues rose by 13.9%. 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.
  • The gross profit margin for AMERICAN TOWER CORP is currently very high, coming in at 71.87%. 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 13.28% is significantly lower than the industry average.
  • After a year of stock price fluctuations, the net result is that AMT's price has not changed very much. Although its weak earnings growth may have played a role in this flat result, don't lose sight of the fact that the performance of the overall market, as measured by the S&P 500 Index, was essentially similar. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
  • AMERICAN TOWER CORP's earnings per share declined by 48.3% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, AMERICAN TOWER CORP increased its bottom line by earning $2.01 versus $1.38 in the prior year. For the next year, the market is expecting a contraction of 17.9% in earnings ($1.65 versus $2.01).
  • The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Real Estate Investment Trusts (REITs) industry average. The net income has significantly decreased by 33.4% when compared to the same quarter one year ago, falling from $234.43 million to $156.06 million.

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