Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link. Trade-Ideas LLC identified American Tower ( AMT) as a momo momentum 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 $213.2 million.
- AMT has a PE ratio of 45.5.
- AMT is currently in the upper 30% of its 1-year range.
- AMT is in the upper 25% of its 20-day range.
- AMT is in the upper 35% of its 5-day range.
- AMT is currently trading above yesterday's high.
- AMT has experienced a gap between today's open and yesterday's close of 0.1%.
'Momo Momentum' stocks are valuable stocks to watch for a variety of reasons including historical back testing and price action. Market technicians refer to such stocks as being in a mark-up phase before a possible distribution period and price decline. Technical analysts and traders frequently find that the factors referenced above tend to create a temporary burst of strong wind in a stock's sail. Nevertheless, all successful traders must excel at maximizing gains while keeping losses to an absolute minimum. For that reason, the holding period on momo momentum stocks must always be a primary consideration, and this part of the puzzle is ultimately at the discretion of each individual's risk tolerance and portfolio risk management skills. EXCLUSIVE OFFER: Get the inside scoop on opportunities in AMT with the Ticky from Trade-Ideas. See the FREE profile for AMT NOW at Trade-Ideas More details on AMT: American Tower Corporation, a real estate investment trust, operates as a wireless and broadcast communications infrastructure company. It develops, owns, and operates communications sites. The stock currently has a dividend yield of 1.5%. AMT has a PE ratio of 45.5. 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 4.0 million shares per day over the past 30 days. American Tower has a market cap of $28.8 billion and is part of the financial sector and real estate industry. The stock has a beta of 0.14 and a short float of 1.9% with 2.78 days to cover. Shares are down 5.7% year to date as of the close of trading on Friday. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more. 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 robust revenue growth, notable return on equity, impressive record of earnings per share growth, compelling growth in net income and good cash flow from operations. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook. Highlights from the ratings report include:
- AMT's revenue growth has slightly outpaced the industry average of 10.7%. Since the same quarter one year prior, revenues rose by 15.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. 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.
- AMERICAN TOWER CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. 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 ($1.76 versus $1.60).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Real Estate Investment Trusts (REITs) industry. The net income increased by 107.1% when compared to the same quarter one year prior, rising from $48.21 million to $99.82 million.
- Net operating cash flow has slightly increased to $390.49 million or 8.21% when compared to the same quarter last year. In addition, AMERICAN TOWER CORP has also modestly surpassed the industry average cash flow growth rate of 6.41%.
- You can view the full American Tower Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.