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. NEW YORK ( TheStreet) -- American Tower (NYSE: AMT) has been reiterated by TheStreet Ratings as a buy with a ratings score of B+. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity, solid stock price performance and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
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- AMT's revenue growth has slightly outpaced the industry average of 16.4%. Since the same quarter one year prior, revenues rose by 17.6%. 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.
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. 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.
- Compared to its closing price of one year ago, AMT's share price has jumped by 25.42%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, AMT should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- The gross profit margin for AMERICAN TOWER CORP is currently very high, coming in at 73.10%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 17.65% trails the industry average.
- AMERICAN TOWER CORP's earnings per share declined by 34.6% 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 increased its bottom line by earning $1.60 versus $1.00 in the prior year. This year, the market expects an improvement in earnings ($2.15 versus $1.60).
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