American Tower Corp (AMT): Today's Featured Real Estate Laggard

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 Real Estate industry lower today making it today's featured Real Estate laggard. The industry as a whole closed the day down 1.4%. By the end of trading, American Tower fell $2.04 (-2.5%) to $79.46 on heavy volume. Throughout the day, 3,391,325 shares of American Tower exchanged hands as compared to its average daily volume of 2,080,800 shares. The stock ranged in price between $78.90-$80.94 after having opened the day at $80.92 as compared to the previous trading day's close of $81.50. Other companies within the Real Estate industry that declined today were: Amrep Corporation ( AXR), down 9.8%, Doral Financial ( DRL), down 7.3%, Inland Real Estate Corporation ( IRC), down 7.1% and Sabra Health Care REIT ( SBRA), down 7.1%.
  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass

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 $32.3 billion and is part of the technology sector. The company has a P/E ratio of 55.2, above the S&P 500 P/E ratio of 17.7. Shares are up 5.8% year to date as of the close of trading on Tuesday. Currently there are 15 analysts that rate American Tower a buy, no analysts rate it a sell, and none 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 robust revenue growth, notable return on equity, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, Vestin Realty Mortgage II ( VRTB), down 27.7%, China HGS Real Estate ( HGSH), down 10.3%, Capital ( CT), down 9.6% and Blackstone Mortgate ( BXMT), down 9.6%.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the real estate industry could consider iShares Dow Jones US Real Estate ( IYR) while those bearish on the real estate industry could consider ProShares Short Real Estate Fund ( REK).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

If you liked this article you might like

More Risk Than Reward on American Tower

Stocks Are Guilty by Association: Cramer's 'Mad Money' Recap (Thursday 7/20/17)

Cramer: These Sectors Look Bullish (Part III)

Cramer: There Are Powerful Themes in Several Bull Markets

Southwest, Hawaiian Holdings, Nucor, and American Water Works: 'Mad Money' Lightning Round