American Tower Corp (AMT): Today's Featured Real Estate 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 Real Estate industry higher today making it today's featured real estate winner. The industry as a whole closed the day up 1.6%. By the end of trading, American Tower rose $1.81 (2.5%) to $72.90 on heavy volume. Throughout the day, 3,762,436 shares of American Tower exchanged hands as compared to its average daily volume of 2,435,900 shares. The stock ranged in a price between $71.31-$73.32 after having opened the day at $71.46 as compared to the previous trading day's close of $71.09. Other companies within the Real Estate industry that increased today were: Supertel Hospitality ( SPPR), up 10.3%, Arbor Realty ( ABR), up 8.7%, Brookfield Residential Properties ( BRP), up 6.8% and Vestin Realty Mortgage II ( VRTB), up 6.6%.
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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 $28.5 billion and is part of the financial sector. The company has a P/E ratio of 48.6, above the S&P 500 P/E ratio of 17.7. Shares are down 8.0% year to date as of the close of trading on Monday. Currently there are 16 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 increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the negative front, American Realty Investors ( ARL), down 9.4%, Intergroup Corporation ( INTG), down 4.2%, China HGS Real Estate ( HGSH), down 4.0% and Blackstone Mortgage ( BXMT), down 3.8%.

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).

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