American Tower Corp (AMT): Today's Featured Telecommunications Winner

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

American Tower ( AMT) pushed the Telecommunications industry higher today making it today's featured telecommunications winner. The industry as a whole closed the day down 2.1%. By the end of trading, American Tower rose $1.47 (2%) to $75.24 on heavy volume. Throughout the day, 4.9 million shares of American Tower exchanged hands as compared to its average daily volume of 2.2 million shares. The stock ranged in a price between $74.03-$76.04 after having opened the day at $74.83 as compared to the previous trading day's close of $73.77. Other companies within the Telecommunications industry that increased today were: China TechFaith Wireless Comm Tech ( CNTF), up 11.3%, Ciena Corporation ( CIEN), up 9.6%, Telular Corporation ( WRLS), up 8.9%, and EXFO ( EXFO), up 7%.
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American Tower Corporation, a real estate investment trust, operates as a wireless and broadcast communications infrastructure company. It develops, owns, and operates communications sites. American Tower has a market cap of $29.25 billion and is part of the technology sector. The company has a P/E ratio of 41.8, above the S&P 500 P/E ratio of 17.7. Shares are up 22.9% year to date as of the close of trading on Tuesday. Currently there are 14 analysts that rate American Tower a buy, no analysts rate it a sell, and three rate it a hold.

TheStreet Ratings rates American Tower as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, revenue growth and notable return on equity. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

On the negative front, Telephone and Data Systems ( TDS), down 16.6%, United States Cellular Corporation ( USM), down 12.4%, Sonus Networks ( SONS), down 10.5%, and ARC Group Worldwide ( ARCW), down 10.4%, were all laggards within the telecommunications industry with CenturyLink ( CTL) being today's telecommunications industry laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the telecommunications industry could consider iShares Dow Jones US Telecom ( IYZ) while those bearish on the telecommunications industry could consider ProShares Ult Sht Telecommunication ( TLL).

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