Why American Tower Is Ready to Rebound
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, wireless communication tower operator has earned a respected four-star ranking.
With that in mind, let's take a closer look at American Tower and see what CAPS investors are saying about the stock right now.
American Towerfacts
Headquarters (founded) | Boston (1995) |
Market Cap | $29.5 billion |
Industry | Diversified REIT |
Trailing-12-Month Revenue | $3.0 billion |
Management | Chairman/CEO James Taiclet, Jr. CFO Thomas Bartlett |
Return on Equity (average, past 3 years) | 13.2% |
Cash/Debt | $441.7 million / $8.9 billion |
Dividend Yield | 1.5% |
Competitors |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 93% of the 1,143 members who have rated American Tower believe the stock will outperform the S&P 500 going forward.
Just last month, fellow Fool Simon Erickson (TMFInnovator) tapped American Tower as a particularly tempting bargain opportunity:
- A short term miss on Wall Street expectations due to debt refinancing and currency effects giving us an opportunity to buy this long-term outperformer.
-AMT is showing strong growth. Their core tower management business is growing revenues at 20% annually; 33% internationally. 4G investments are being made by all carriers and require new towers from AMT.
-There is definitely plenty of demand for their business. Mobile traffic is expected to compound at a 66% annual growth rate (!!) between now and 2017, according to Cisco.
-US business is organized as a REIT, which is great for continued dividend payouts/increases. As international subsidiaries need less capital for expansion, they likely too will convert to REIT status, effectively turning this growth business into a cash cow.
If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, American Tower may not be your top choice.
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The article Why American Tower Is Ready to Rebound originally appeared on Fool.com.
Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends American Tower and Cisco Systems. The Motley Fool owns shares of American Tower. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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