![]() Stocks were very attractive compared to bonds in the late 1970s, when benchmark Treasury rates were in the high teens before heading consistently lower. The model has done a good job of highlighting asset class value. Bond yields around 4%, by comparison, come closer to our fair value target yield of 4.5%. The current valuation level is a 1.1 sigma premium for stocks, which is just outside the normal range. The mean reading from the model, going back to 1960, is a modest premium for stocks of 0.15 sigma, with a standard deviation of 1.0. The model output is expressed in terms of standard deviations to the mean, or sigma. Our model takes into account current levels and forecasts of short-term and long-term government and corporate fixed-income yields, inflation, stock prices, GDP, and corporate earnings, among other factors. Our bond/stock asset-allocation model indicates that bonds are very close to fair value, as rising yields have made fixed-income investments relatively more attractive. For comparison, its industry has an average Forward P/E of 11.71, which means American Tower is trading at a premium to the group.Daily Spotlight: Favorable Value for Bonds In terms of valuation, American Tower is currently trading at a Forward P/E ratio of 19.78. American Tower is currently sporting a Zacks Rank of #3 (Hold). Over the past month, the Zacks Consensus EPS estimate has moved 0.16% lower. It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). Our system takes these estimate changes into account and delivers a clear, actionable rating model. We developed the Zacks Rank to capitalize on this phenomenon. Research indicates that these estimate revisions are directly correlated with near-term share price momentum. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook. These recent revisions tend to reflect the evolving nature of short-term business trends. Investors might also notice recent changes to analyst estimates for American Tower. These results would represent year-over-year changes of -1.02% and +2.75%, respectively. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.73 billion, up 2.23% from the year-ago period.ĪMT's full-year Zacks Consensus Estimates are calling for earnings of $9.66 per share and revenue of $11.01 billion. The company is expected to report EPS of $2.36, down 8.88% from the prior-year quarter. Investors will be hoping for strength from American Tower as it approaches its next earnings release. This has lagged the Finance sector's gain of 2.29% and the S&P 500's gain of 4.14% in that time. ![]() Prior to today's trading, shares of the wireless communications infrastructure company had lost 2.85% over the past month. At the same time, the Dow lost 0.59%, and the tech-heavy Nasdaq lost 1.54%. ![]() This change lagged the S&P 500's 0.2% loss on the day. American Tower (AMT) closed the most recent trading day at $188.64, moving -1.31% from the previous trading session. ![]()
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