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2023-12-16
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AMT
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Below is Validea's guru fundamental report for AMERICAN TOWER CORP (AMT). Of the 22 guru strategies we follow, AMT rates highest using our Multi-Factor Investor model based on the published strategy of Pim van Vliet. This multi-factor model seeks low volatility stocks that also have strong momentum and high net payout yields.
AMERICAN TOWER CORP (AMT) is a large-cap growth stock in the Rental & Leasing industry. The rating using this strategy is 56% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
MARKET CAP: PASS
STANDARD DEVIATION: PASS
TWELVE MINUS ONE MOMENTUM: NEUTRAL
NET PAYOUT YIELD: NEUTRAL
FINAL RANK: FAIL
Detailed Analysis of AMERICAN TOWER CORP
AMT Guru Analysis
AMT Fundamental Analysis
More Information on Pim van Vliet
Pim van Vliet Portfolio
About Pim van Vliet: In investing, you typically need to take more risk to get more return. There is one major exception to this in the factor investing world, though. Low volatility stocks have been proven to outperform their high volatility counterparts, and do so with less risk. Pim van Vliet is the head of Conservative Equities at Robeco Asset Management. His research into conservative factor investing led to the creation of this strategy and the publication of the book "High Returns From Low Risk: A Remarkable Stock Market Paradox". Van Vliet holds a PhD in Financial and Business Economics from Erasmus University Rotterdam.
Additional Research Links
Top Large-Cap Growth Stocks
Factor-Based Stock Portfolios
Dividend Aristocrats 2023
High Insider Ownership Stocks
Top S&P 500 Stocks
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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2023-12-16
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AMT
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No one can predict what the stock market will do in 2024 or how any individual stock will fare. Investors can set themselves up for success by buying shares of companies with solid long-term prospects that are trading at reasonable valuations and holding on tight.
I'm betting that International Business Machines (NYSE: IBM), Intel (NASDAQ: INTC), AT&T (NYSE: T), Walt Disney (NYSE: DIS), and American Tower (NYSE: AMT) will deliver in 2024 and beyond. Here's why.
IBM
Cloud computing is complicated. So is artificial intelligence. For large enterprises and organizations with vast IT infrastructures and low risk tolerances, moving everything to Amazon Web Services (AWS) or tapping OpenAI may not be viable options.
IBM has positioned itself as a critical partner for enterprises looking to digitally transform and modernize their operations. The company's hybrid cloud platform can run anywhere, enabling clients to mix and match public clouds and their own private data centers. And watsonx, IBM's new enterprise AI platform, is tailor-made for enterprises that need to ensure their proprietary data remains safe and that they comply with regulatory requirements.
IBM expects to grow revenue by 3% to 5% this year, driven by strong demand for digital-transformation projects that deliver clear returns on investment for customers. IBM certainly isn't the fastest growing tech company, but valued at just 14 times forward free cash flow, it doesn't need to be to produce solid returns for investors.
Intel
What stands out about Intel is how many ways it can win. The company is best known for its PC and server central processing units (CPUs), but it also sells graphics cards, AI accelerators, and other specialized chips. In addition to making its own chips, Intel is building a foundry business to rival market leader TSMC. With the launch of the Intel 18A manufacturing process scheduled for late 2024, Intel expects to gain a technological advantage.
No matter where the semiconductor industry goes, Intel will benefit through its foundry business. As demand for AI accelerators continues to explode, not only does Intel sell its Gaudi AI chips and data-center graphics processing units (GPUs), but it could eventually manufacture AI chips for others. If Arm-based PCs become a thing, Intel will be ready to manufacture those Arm chips thanks to a collaboration with Arm. Once the Intel 18A process is ready, the company's total addressable market will expand dramatically.
Intel stock is down around 33% from its pandemic-era high, and the company has a market value below that of rival AMD. Neither will remain true for long as Intel's foundry strategy plays out over the next few years.
AT&T
Telecom giant AT&T has a lot of debt, and its expensive fumbles in the media industry should rightly give investors some pause. But the company has gotten back to basics. Fiber internet and 5G wireless are the core focuses. The wireless business continues to gain subscribers, albeit at a slower rate than last year, and the fiber business is steadily expanding.
AT&T expects to generate free cash flow of $16.5 billion this year, and the company's capital intensity should ease over the next few years as the 5G investment cycle winds down. A recent move to revamp its wireless infrastructure with more flexible hardware and software could free up some capital to grow other businesses, including fiber internet, a bit faster.
AT&T trades for just 7 times free-cash-flow guidance and sports a 6.7% dividend yield. The company's results are sensitive to economic conditions, but that valuation seems far too pessimistic to me.
Walt Disney
The reason to own Disney stock is simple: The iconic company will eventually figure out how to make its valuable intellectual property and assets work in the age of streaming. Disney's linear TV business has long been a cash cow, but that won't remain the case forever.
The company is focusing on four areas: Making the streaming business profitable, turning ESPN into a digital sports powerhouse, fixing the film business that's been stumbling in the post-pandemic era, and accelerating growth in the experiences business, which includes the company's parks and its cruise line.
Disney's superpower has always been its ability to have each business feed into and strengthen the others, fueled by its vast catalog of media assets. It will take time for Disney to fully right the ship, but there's little reason to believe the company won't eventually figure it out.
American Tower
American Tower owns cell towers and other communications assets around the world. While its growth depends on the capital spending of its telecom customers, long-term contracts make its revenue extremely predictable. As long as demand for mobile data continues to rise, American Tower will benefit as wireless providers race to keep pace with each other.
Shares of American Tower have rallied over the past two months, but the stock still looks like a solid deal. The company has been consistently raising its dividend, even throughout the pandemic. The stock currently has a dividend yield of about 3.2 %, more than double that of the S&P 500.
American Tower's business is about as stable as they come. For long-term investors, it's a stock worth buying and holding.
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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Timothy Green has positions in AT&T, American Tower, Intel, International Business Machines, and Walt Disney. The Motley Fool has positions in and recommends Advanced Micro Devices, Amazon, American Tower, Taiwan Semiconductor Manufacturing, and Walt Disney. The Motley Fool recommends Intel and International Business Machines and recommends the following options: long January 2023 $57.50 calls on Intel, long January 2025 $45 calls on Intel, long January 2026 $180 calls on American Tower, short February 2024 $47 calls on Intel, and short January 2026 $185 calls on American Tower. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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2023-12-16
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AMT
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In mid-October, I wrote a bullish piece on American Tower (NYSE:AMT), suggesting that the stock could be a dividend growth powerhouse. The REIT, owning and leasing 225,000 communication towers and 28 data centers, was trading near its five-year-lows at the time. Since then, the stock has surged, leading to a current dividend yield of roughly 3%, notably lower than the pre-rebound figure of 4%. Despite this, I believe AMT remains a solid dividend growth Buy at its current levels, and I maintain a bullish outlook.
What Has Caused AMT Stock to Surge?
AMT stock has experienced a remarkable upswing, surging by nearly 38% from its October 52-week low of ~$153/share. This notable surge is likely a result of investors anticipating interest rate cuts in 2024, a development that could significantly benefit AMT and the broader REIT market. Specifically, interest rate cuts should benefit the company in two ways: improved profitability and more exciting growth prospects.
Regarding improved profitability, this is primarily due to the potential decrease in interest expenses on the company's heavily indebted balance sheet. To elaborate, despite a decrease in AMT's total debt from $52.0 billion at the end of 2021 (Q4) to $46.8 billion by the end of Q3-2023, the company witnessed a surge in interest expenses from $224.1 million to $359.2 million over this period.
This escalation can be attributed to the swift interest rate hikes that took place in between these quarters. The inverse effect is anticipated with rate cuts, with lower interest expenses set to improve AMT's overall profitability.
Secondly, lower rates should make management more comfortable with undertaking additional debt, which, in turn, should improve the company's growth prospects. Remember that REITs primarily fuel their growth through a combination of debt and equity, given their regular distribution of earnings in the form of dividends. Consequently, the ability to access cheaper debt, as was the case before rates surged, should reignite AMT's growth trajectory.
As the demand for AMT's equity premium decreases and stock valuation multiples rise in the face of lower interest rates, the stock will likely gain positive momentum upward. This already appears to be the case, which, in turn, should foster more beneficial equity raises and thus contribute to a healthy funding mix along with debt issuances.
Based on the signals emanating from the Federal Reserve's December meeting, which strongly indicate the possibility of three imminent rate cuts in the upcoming year, investors' anticipation of a shift in stock sentiment to bullish in mid-October was, in fact, prescient. Thus, the scenario described above, including improved profitability and growth prospects, as described earlier, seems increasingly probable.
Robust Results Support Exciting Dividend Growth Potential
While interest rate cuts should be a strong tailwind for the stock next year, my enthusiasm for AMT extends beyond this, fueled predominantly by its promising dividend growth prospects. To elaborate, let me give a quick overview of the company's most recent results, as well as its future anticipated results.
During the third quarter, AMT experienced sustained positive trends across its operations, resulting in a robust 7% increase in property revenue. This growth was fueled by a 7.3% increase in organic tenant billings within its tower business. Interestingly, organic tenant billings growth surpassed 6% for the third consecutive quarter. This solid performance was coupled with a notable rise of over 9% in its Data Center business.
Source: American Tower's Q3 Earnings Presentation
Further, despite the significant year-over-year increase of 22.2% in interest expenses to $359.2 million due to rising rates, AFFO (adjusted funds from operations, a cash-flow metric used by REITs) grew by 9.5% to $1.2 billion due to prudent cost management. AFFO/share also grew by 9.3% to $2.58.
With results coming in better than expected, the company raised its guidance for the year, expecting its Fiscal 2023 AFFO/share to be between $9.72 and $9.85 billion. The midpoint within this range suggests modest year-over-year growth of only 0.3%, with profitability notably hampered by increased interest costs in AMT's initial half of the year.
Nevertheless, consensus estimates indicate a more optimistic outlook for Fiscal 2024 and Fiscal 2025, with anticipated AFFO/share figures of $10.34 and $11.21, respectively. This reflects the market's expectation of improved profitability, potentially driven by lower interest rates. The significant rebound in AFFO/share from 2024 onward should also allow the company to maintain its thrilling dividend growth track record.
For context, AMT has increased its dividend for 12 consecutive years, with its 10-year dividend growth CAGR standing at an outstanding 19.2%. With expectations for a strong reacceleration in AFFO/share and the payout ratio standing at about 2/3 of AFFO/share, double-digit dividend hikes will likely persist. Coupled with the current dividend yield of about 3%, AMT remains a highly attractive dividend growth powerhouse, in my view.
Is AMT Stock a Buy, According to Analysts?
Checking Wall Street’s sentiment on the stock, American Tower Corp currently boasts a Strong Buy consensus rating based on 12 Buys and two Holds assigned in the past three months. At $221.85, the average AMT stock price target implies 5.1% upside potential.
If you’re wondering which analyst you should listen to if you want to buy and sell AMT stock, the most accurate analyst covering the stock (on a one-year timeframe) is David Barden, representing Bank of America Securities. His track record is robust, with an average return of 11.6% per rating and a 78% success rate. Click on the image below to learn more.
The Takeaway
American Tower's impressive surge from its October lows underscores the positive impact of anticipated interest rate cuts. Simultaneously, the company's robust dividend growth track record and optimistic future projections are poised to support substantial dividend increases moving forward and reinforce its status as a dividend growth powerhouse. Consequently, I remain bullish on the stock.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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2023-12-15
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AMT
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares U.S. Real Estate ETF (Symbol: IYR) where we have detected an approximate $332.8 million dollar inflow -- that's a 8.0% increase week over week in outstanding units (from 45,600,000 to 49,250,000). Among the largest underlying components of IYR, in trading today Prologis Inc (Symbol: PLD) is trading flat, American Tower Corp (Symbol: AMT) is trading flat, and Equinix Inc (Symbol: EQIX) is lower by about 0.2%. For a complete list of holdings, visit the IYR Holdings page » The chart below shows the one year price performance of IYR, versus its 200 day moving average:
Looking at the chart above, IYR's low point in its 52 week range is $72.88 per share, with $96.02 as the 52 week high point — that compares with a last trade of $91.22. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Free Report: Top 8%+ Dividends (paid monthly)
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs had notable inflows »
Also see:
Top Ten Hedge Funds Holding MCRS
SERV market cap history
Top Ten Hedge Funds Holding MGV
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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2023-12-15
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AMT
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All of the three widely followed indexes closed a seventh straight winning week. The Dow Jones Industrial Average, the tech-heavy Nasdaq Composite and the S&P 500 jumped 2.9%, 2.8% and 2.5%, respectively.
During the week, investor mood remained upbeat upon the conclusion of the Fed December meeting, where it signaled that interest rates may have already peaked and rate cuts were to be expected in 2024. Inflation indicators also suggested that the tight monetary policy employed by the central bank was taking effect, with headline PPI remaining flat and CPI coming in way below expectations. Treasury yields fell, hovering around the 4% mark, down from their October peak of above 5%.
The Fed currently expects interest rates to be 4.6% by the end of 2024, down from the 5.1% it had projected earlier. On cue, market participants are expecting rate cuts as early as March 2024.
Regardless of market conditions, we, here at Zacks, provide investors with unbiased guidance on how to beat the market.
As usual, Zacks Research guided investors over the past three months with its time-tested methodologies. Given the prevailing market uncertainty, you may want to look at our feats to prepare better for your next action.
Here are some of our key achievements:
Block and FB Financial Surge Following Zacks Rank Upgrade
Shares of Block, Inc. SQ have gained 68% (versus the S&P 500’s 9.5% increase) since it was upgraded to a Zacks Rank #2 (Buy) on October 20.
Another stock, FB Financial Corporation FBK, which was upgraded to a Zacks Rank #2 on October 19, has returned 34.2% (versus the S&P 500’s 8.6% increase) since then.
Zacks Rank, our short-term rating system, has earnings estimate revisions at its core. Empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
A hypothetical portfolio of Zacks Rank #1 (Strong Buy) stocks returned +12.02% this year (through September 4th) vs. +18.2% for the S&P 500 index and +7.6% for the equal-weight S&P 500 index. The portfolio of Zacks Rank #1 stocks is an equal-weight portfolio, while the S&P 500 index is a market-cap-weighted index that has been notably distorted by the strong recent performance of mega-cap stocks.
We are not trying to cherry-pick here. But since this Zacks Model portfolio, consisting of Zacks Rank #1 stocks, is an equal-weight portfolio, the equal-weight S&P 500 index is the appropriate benchmark for comparison. Looked at this way, this portfolio has outperformed the index this year.
The Zacks Model Portfolio - consisting of Zacks Rank #1 stocks – has outperformed the S&P index by more than 13 percentage points since 1988 (Through September 4th, 2023, the Zacks # 1 Rank stocks has generated an annualized return of +24.17% since 1988 vs. +10.82% for the S&P 500 index).You can see the complete list of today’s Zacks Rank #1 stocks here >>>
Check Block’s historical EPS and Sales here>>>
Check FB Financial’s historical EPS and Sales here>>>
Image Source: Zacks Investment Research
Zacks Recommendation Upgrades Manitex and GoDaddy Higher
Shares of Manitex International, Inc. MNTX and GoDaddy Inc. GDDY have advanced 57.7% (versus the S&P 500’s 8.3% rise) and 38.8% (versus the S&P 500’s 7.2% rise) since their Zacks Recommendation was upgraded to Outperform on October 16 and October 17, respectively.
While the Zacks Rank is our short-term rating system that is most effective over the one- to three-month holding horizon, the Zacks Recommendation aims to predict performance over the next 6 to 12 months. However, just like the Zacks Rank, the foundation for the Zacks Recommendation is trends in earnings estimate revisions.
The Zacks Recommendation classifies stocks into three groups — Outperform, Neutral and Underperform. While these recommendations are determined quantitatively, our analysts have the flexibility to override them for the 1100+ stocks they closely follow based on their better judgment of factors such as valuation, industry conditions and management effectiveness than the quantitative model.
To access our research reports with Zacks Recommendations for the 1100+ stocks we cover, click here>>>
Zacks Focus List Stocks Shopify, Uber Shoot Up
Shares of Shopify Inc. SHOP, which belongs to the Zacks Focus List, have gained 44.7% over the past 12 weeks. The stock was added to the Focus List on September 6, 2022. Another Focus-List holding, Uber Technologies, Inc. UBER, which was added to the portfolio on August 16, 2019, has returned 39.3% over the past 12 weeks. The S&P 500 has advanced 9% over this period.
The 50-stock Zacks Focus List model portfolio returned +22.3% in 2023 (through July 31st) vs. +20.6% for the S&P 500 index and +10.5% for the equal-weight S&P 500 index. In 2022, the portfolio produced -15.2% vs. the S&P 500 index’s -17.96%.
Since 2004, the Focus List portfolio has produced an annualized return of +11.27% through July 31st, 2023. This compares to a +9.65% annualized return for the S&P 500 index in the same time period.
On a rolling one-, three- and five-year bases, the Zacks Focus List returned +21.76%, +16.33%, and +12.54% vs. +12.99%, +13.71% and +12.19% for the S&P 500 index, respectively.
Unlock all of our powerful research, tools and analysis, including the Focus List, Zacks #1 Rank List, Equity Research Reports, Zacks Earnings ESP Filter, Premium Screener and more, as part of Zacks Premium. Gain full access now >>
Zacks ECAP Stocks Fair Isaac and Intuit Make Significant Gains
Fair Isaac Corporation FICO, a component of our Earnings Certain Admiral Portfolio (ECAP), has jumped 27% over the past 12 weeks. Intuit Inc. INTU has followed Fair Isaac with 19.7% returns.
ECAP, which consists of 30 concentrated, ultra-defensive, long-term Buy-and-Hold stocks, has returned +6.67% in 2023 (through June 30) versus +16.90% for the S&P 500 Index. The portfolio returned -4.7% in 2022 versus the S&P 500 Index’s -17.96%.
With little to no turnover and annual rebalance periodicity, the ECAP seeks to minimize capital loss by holding shares of companies whose earnings streams exhibit a proven 20+ year track record of surviving recessionary periods with minimal impact on aggregate earnings growth relative to the overall S&P 500.
The ECAP and many other model portfolios are available as part of Zacks Advisor Tools, a cloud-based solution to access Zacks award-winning stock, mutual fund and ETF research. Click here to schedule a demo.
Zacks ECDP Stocks American Tower and Fastenal Outperform Peers
American Tower Corporation AMT, which is part of our Earnings Certain Dividend Portfolio (ECDP), has returned 27.6% over the past 12 weeks. Another ECDP stock, Fastenal Company FAST, has climbed 18.4% over the same time frame. Of course, the inclination of investors toward quality dividend stocks to secure an income stream amid heightened market volatility contributed to this performance.
Check American Tower’s dividend history here>>>
Check Fastenal’s dividend history here>>>
With an extremely low Beta and a history of minimum earnings variability over the last 20+ years, this 25-stock portfolio helps significantly mitigate risk.
ECDP has returned +0.18% in 2023 (through June 30) versus +16.90% for the S&P 500 Index. The portfolio returned -2.3% in 2022 versus -17.96% for the S&P 500 Index and -8.34% for the ProShares S&P 500 Dividend Aristocrats ETF NOBL.
Click here to access this portfolio on Zacks Advisor Tools.
Zacks Top 10 Stocks — Celsius Delivers Solid Returns
Celsius Holdings, Inc. CELH, from the Zacks Top 10 Stocks for 2023, has surged 43.3% year to date, which compares to a 24.8% gain for the S&P 500 Index.
The portfolio returned +16.16% through the end of July 2023 vs. +20.64% for the S&P 500 index and +10.73% for the equal-weighted version of the index. The portfolio returned -15.8% in 2022 vs. -18.1% for the S&P 500 index. Since 2012, the Top 10 portfolio has generated an annualized return of +22.78% vs. +13.65% for the S&P 500 index.
Since the start of 2012 through July 31, 2023, the Zacks Top 10 Stocks have produced a cumulative return of +977.47% vs. +340.35% cumulative return for the S&P 500 index.
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
Be First to New Top 10 Stocks >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
American Tower Corporation (AMT) : Free Stock Analysis Report
Fastenal Company (FAST) : Free Stock Analysis Report
Intuit Inc. (INTU) : Free Stock Analysis Report
Manitex International, Inc. (MNTX) : Free Stock Analysis Report
Fair Isaac Corporation (FICO) : Free Stock Analysis Report
GoDaddy Inc. (GDDY) : Free Stock Analysis Report
Shopify Inc. (SHOP) : Free Stock Analysis Report
Block, Inc. (SQ) : Free Stock Analysis Report
ProShares S&P 500 Dividend Aristocrats ETF (NOBL): ETF Research Reports
FB Financial Corporation (FBK) : Free Stock Analysis Report
Celsius Holdings Inc. (CELH) : Free Stock Analysis Report
Uber Technologies, Inc. (UBER) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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2023-12-14
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AMT
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The real estate sector is a big deal in our economy. Beyond bricks and mortar, the sector creates jobs, services, and growth across the continental United States. Also, real estate stocks let you invest without buying actual buildings. It’s like owning a small part of the companies rather than the properties themselves. As a result, real estate stocks are a popular choice among investors.
Popular as the sector might be, many people have been pessimistic about the market’s current condition. High real estate prices, high mortgage rates, and low inventory remain prevalent. And this has had its effect on real estate in general.
Despite the setbacks, some companies offer refuge by offering a stable dividend and growth opportunities. Here are some of the most promising real estate stocks to look at right now.
American Tower Corp (AMT)
Source: Shutterstock
American Tower Corporation (NYSE:AMT) is the first real estate stock on the list. The company is one of the leading global real estate investment trusts (REITs) and has over 28 years of experience owning, operating, and developing property for wireless and broadcast communications.
Headquartered in Boston, American Tower has a portfolio of nearly 225,000 communication sites worldwide, about 43,000 properties in the U.S. and Canada, and approximately 182,000 international properties. American Tower was recently named Top 25 “Dividend Giant” with “a staggering” $14.86 billion in ETF-held stock.
Today, the company pays a 3.14% dividend yield, has a consistent payout history, and has strong long-term growth, solidifying its industry position. AMT’s third-quarter financials show strong growth despite a dip in net income. Total revenue rose 5.5% to $2.819 billion, mostly driven by a 7% increase in property revenue to $2.792 billion. Adjusted EBITDA also grew 10.4% to $1.814 billion, although net income fell 29.6% to $577 million. All in all, 19 analysts rate AMT a strong buy rating with a high estimate of $259, representing 20% upside potential.
With all that being said, AMT represents a promising investment opportunity and one of the best real estate stocks to buy.
Alexandria Real Estate Equities (ARE)
Source: Shutterstock
The next real estate stock on our list is Alexandria Real Estate Equities (NYSE:ARE). Like American Towers, the company is an REIT that has been around for almost 30 years. Alexandria manages over 75-million square feet of properties across research centers in North America, serving over 800 high-profile tenants. These include companies specializing in life science, agricultural tech, and technology campuses.
Today, its market capitalization is roughly $20 billion. The company recently announced a 2.4% dividend increase to $1.27 per share for the fourth quarter this year, up from $1.24 last quarter. The dividend ex-date is Dec. 28 and will be paid out on Jan. 12, 2024.
ARE delivered solid financial results in the third quarter, with net income rising 7.9% year-over-year to $1.8 billion. This growth builds on consistent positive trends in the company’s same property net operating income.
Looking ahead, ARE’s decision to incorporate a 3% annual rent increase in 96% of its leases helps ensure future profitability. Their balance sheet also reflects robust liquidity of $5.9 billion and no debt maturities due before 2025. And for the icing on the cake, analysts estimate the stock has roughly 55% upside potential.
Ventas, Inc. (VTR)
Source: Monkey Business Images / Shutterstock.com
The last real estate stock, but not least, is Ventas, Inc. (NYSE:VTR). Ventas is a healthcare REIT that has been around for over 26 years and is listed on the S&P 500. With an enterprise value over $31.75 billion and 1,400 properties, it capitalizes on the growing aging population’s demand for senior housing and medical facilities. Ranking as the 19th largest REIT in the S&P 500, Ventas has delivered an impressive 17% annualized return to shareholders since 1999.
The company reported positive financial growth in the third quarter. Net operating income increased by 5.1%, while same-store cash net operating Income jumped by 7.9%. This growth came from higher occupancy rates, increased revenue per occupied room, and controlled operating expenses, resulting in a 230 basis point margin expansion. Although net loss per share was $0.18 for the quarter, this was recorded as a non-cash impairment on real estate assets held for sale. The company maintained a dividend of $0.45 per share, translating to a 3.85% yield. On top of that, analysts rate the stock as a strong buy with a high target of $53 per share.
On the date of publication, Rick Orford did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Rick Orford is a Wall Street Journal best-selling author, investor, influencer, and mentor. His work has appeared in the most authoritative publications, including Good Morning America, Washington Post, Yahoo Finance, MSN, Business Insider, NBC, FOX, CBS, and ABC News.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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2023-12-13
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AMT
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Below is Validea's guru fundamental report for AMERICAN TOWER CORP (AMT). Of the 22 guru strategies we follow, AMT rates highest using our Multi-Factor Investor model based on the published strategy of Pim van Vliet. This multi-factor model seeks low volatility stocks that also have strong momentum and high net payout yields.
AMERICAN TOWER CORP (AMT) is a large-cap growth stock in the Rental & Leasing industry. The rating using this strategy is 56% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
MARKET CAP: PASS
STANDARD DEVIATION: PASS
TWELVE MINUS ONE MOMENTUM: NEUTRAL
NET PAYOUT YIELD: NEUTRAL
FINAL RANK: FAIL
Detailed Analysis of AMERICAN TOWER CORP
AMT Guru Analysis
AMT Fundamental Analysis
More Information on Pim van Vliet
Pim van Vliet Portfolio
About Pim van Vliet: In investing, you typically need to take more risk to get more return. There is one major exception to this in the factor investing world, though. Low volatility stocks have been proven to outperform their high volatility counterparts, and do so with less risk. Pim van Vliet is the head of Conservative Equities at Robeco Asset Management. His research into conservative factor investing led to the creation of this strategy and the publication of the book "High Returns From Low Risk: A Remarkable Stock Market Paradox". Van Vliet holds a PhD in Financial and Business Economics from Erasmus University Rotterdam.
Additional Research Links
Top NASDAQ 100 Stocks
Factor-Based ETF Portfolios
Harry Browne Permanent Portfolio
Ray Dalio All Weather Portfolio
High Shareholder Yield Stocks
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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2023-12-13
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AMT
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American Tower Corporation’s AMT subsidiary, CoreSite, is making significant strides in meeting the escalating demands of the digital landscape. The recent announcement of major expansions in its New York and Denver data center campuses underscores the company's commitment to providing cutting-edge hybrid IT solutions. The new facilities will add 685,000 square feet of data center space to the company’s portfolio.
The most recent addition to CoreSite's New York campus, referred to as NY3, has obtained final permitting for the construction of an 85,000-square-foot facility with a capacity of 15 critical megawatts (CMW). Additionally, CoreSite received conceptual approval for a Denver market expansion, featuring a three-building data center campus covering approximately 600,000 square feet and boasting a capacity of 60 CMW.
One of CoreSite's flagship projects is the purpose-built NY3 data center adjacent to its existing NY2 facility. This expansion, comprising an 85,000-square-foot facility, with 15 critical megawatts (CMW) of capacity, is a response to the burgeoning needs of public and private cloud providers, enterprises, and network and service providers. The construction of NY3 is expected to be completed in fourth-quarter 2024.
The New York expansion is a strategic move, reinforcing CoreSite's presence on the Eastern Seaboard and enhancing its position as one of the best-connected and most scalable data center campuses in the region. This development aligns with CoreSite's mission to help enterprises enhance application performance, reduce total cost of ownership and accelerate time to market.
In Denver, CoreSite's expansion plans include a three-building data center development on a 15-acre site. This ambitious project aims to meet the increasing capacity and power demands in the Denver market, where CoreSite already operates DE1 and DE2 data centers. The new campus, featuring an on-site substation, will provide 18 CMW of capacity across three floors in the first facility.
Brian Warren, CoreSite's SVP of Development and Product Engineering, emphasized the company's commitment to best practices in data center design and construction. The campus model is driven by customer demand, as well as the surge in the adoption of artificial intelligence and other high-density, high-performance computing applications.
Such efforts offer American Tower the opportunity to capitalize on the CoreSite's highly interconnected data center facilities and bank on the robust demand from enterprises, the cloud, network and IT service providers in the major U.S. markets.
Shares of this Zacks Rank #3 (Hold) company have gained 13.2% in the past three months, outperforming the industry’s growth of 3.6%.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks from the REIT sector are Lamar Advertising Company LAMR and STAG Industrial, Inc. STAG, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Lamar’s current-year FFO per share has been revised 1.7% upward over the past two months to $7.31.
The Zacks Consensus Estimate for STAG Industrial’s 2023 FFO per share has moved marginally upward in the past two months to $2.28 and indicates an estimated increase of 3.2% year over year.
Note: Anything related to earnings presented in this write-up represents FFO — a widely used metric to gauge the performance of REITs.
Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.
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American Tower Corporation (AMT) : Free Stock Analysis Report
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Stag Industrial, Inc. (STAG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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2023-12-12
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AMT
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Fintel reports that on December 14, 2023, HSBC initiated coverage of American Tower (NYSE:AMT) with a Buy recommendation.
Analyst Price Forecast Suggests 0.59% Upside
As of November 27, 2023, the average one-year price target for American Tower is 213.42. The forecasts range from a low of 170.69 to a high of $271.95. The average price target represents an increase of 0.59% from its latest reported closing price of 212.17.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for American Tower is 11,220MM, an increase of 1.42%. The projected annual non-GAAP EPS is 4.72.
American Tower Declares $1.62 Dividend
On September 20, 2023 the company declared a regular quarterly dividend of $1.62 per share ($6.48 annualized). Shareholders of record as of October 11, 2023 received the payment on October 27, 2023. Previously, the company paid $1.57 per share.
At the current share price of $212.17 / share, the stock's dividend yield is 3.05%.
Looking back five years and taking a sample every week, the average dividend yield has been 2.24%, the lowest has been 1.60%, and the highest has been 4.07%. The standard deviation of yields is 0.60 (n=236).
The current dividend yield is 1.36 standard deviations above the historical average.
Additionally, the company's dividend payout ratio is 4.23. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.
The company's 3-Year dividend growth rate is 0.34%, demonstrating that it has increased its dividend over time.
What is the Fund Sentiment?
There are 2806 funds or institutions reporting positions in American Tower. This is a decrease of 22 owner(s) or 0.78% in the last quarter. Average portfolio weight of all funds dedicated to AMT is 0.66%, a decrease of 4.27%. Total shares owned by institutions increased in the last three months by 2.49% to 499,049K shares.
The put/call ratio of AMT is 0.50, indicating a bullish outlook.
What are Other Shareholders Doing?
VGSIX - Vanguard Real Estate Index Fund Investor Shares holds 19,637K shares representing 4.21% ownership of the company. In it's prior filing, the firm reported owning 20,462K shares, representing a decrease of 4.20%. The firm decreased its portfolio allocation in AMT by 12.56% over the last quarter.
Cohen & Steers holds 15,857K shares representing 3.40% ownership of the company. In it's prior filing, the firm reported owning 9,843K shares, representing an increase of 37.93%. The firm increased its portfolio allocation in AMT by 49.06% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 14,510K shares representing 3.11% ownership of the company. In it's prior filing, the firm reported owning 14,527K shares, representing a decrease of 0.12%. The firm decreased its portfolio allocation in AMT by 12.09% over the last quarter.
Wellington Management Group Llp holds 12,984K shares representing 2.79% ownership of the company. In it's prior filing, the firm reported owning 12,292K shares, representing an increase of 5.33%. The firm decreased its portfolio allocation in AMT by 5.25% over the last quarter.
VFINX - Vanguard 500 Index Fund Investor Shares holds 11,201K shares representing 2.40% ownership of the company. In it's prior filing, the firm reported owning 11,096K shares, representing an increase of 0.94%. The firm decreased its portfolio allocation in AMT by 12.35% over the last quarter.
American Tower Background Information
(This description is provided by the company.)
American Tower, one of the largest global REITs, is a leading independent owner, operator and developer of multitenant communications real estate with a portfolio of approximately 186,000 communications sites.
Fintel is one of the most comprehensive investing research platforms available to individual investors, traders, financial advisors, and small hedge funds.
Our data covers the world, and includes fundamentals, analyst reports, ownership data and fund sentiment, options sentiment, insider trading, options flow, unusual options trades, and much more. Additionally, our exclusive stock picks are powered by advanced, backtested quantitative models for improved profits.
Click to Learn More
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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2023-12-12
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AMT
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Below is Validea's guru fundamental report for AMERICAN TOWER CORP (AMT). Of the 22 guru strategies we follow, AMT rates highest using our Multi-Factor Investor model based on the published strategy of Pim van Vliet. This multi-factor model seeks low volatility stocks that also have strong momentum and high net payout yields.
AMERICAN TOWER CORP (AMT) is a large-cap growth stock in the Rental & Leasing industry. The rating using this strategy is 56% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
MARKET CAP: PASS
STANDARD DEVIATION: PASS
TWELVE MINUS ONE MOMENTUM: NEUTRAL
NET PAYOUT YIELD: NEUTRAL
FINAL RANK: FAIL
Detailed Analysis of AMERICAN TOWER CORP
AMT Guru Analysis
AMT Fundamental Analysis
More Information on Pim van Vliet
Pim van Vliet Portfolio
About Pim van Vliet: In investing, you typically need to take more risk to get more return. There is one major exception to this in the factor investing world, though. Low volatility stocks have been proven to outperform their high volatility counterparts, and do so with less risk. Pim van Vliet is the head of Conservative Equities at Robeco Asset Management. His research into conservative factor investing led to the creation of this strategy and the publication of the book "High Returns From Low Risk: A Remarkable Stock Market Paradox". Van Vliet holds a PhD in Financial and Business Economics from Erasmus University Rotterdam.
Additional Research Links
Top NASDAQ 100 Stocks
Factor-Based ETF Portfolios
Harry Browne Permanent Portfolio
Ray Dalio All Weather Portfolio
High Shareholder Yield Stocks
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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2023-12-12
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AMT
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For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you'd invested in American Tower (AMT) ten years ago? It may not have been easy to hold on to AMT for all that time, but if you did, how much would your investment be worth today?
American Tower's Business In-Depth
With that in mind, let's take a look at American Tower's main business drivers.
Boston, MA-based American Tower Corporation is a leading independent operator of wireless communications towers. The company leases space on its communication sites to tenants and offers a range of tower-related services. Its tenants include wireless service providers, broadcasters and other communication service providers. It is also an S&P 500 constituent.
As of Sep 30, 2023, American Tower had a global portfolio of nearly 225,000 communication sites spread across 25 countries. The company’s communication sites included 42,983 in the United States & Canada, 78,088 in the Asia Pacific, 23,931 in Africa, 30,969 in Europe and 48,559 in Latin America. As of the same date, American Tower’s portfolio included 28 operating data center facilities across 10 markets in the United States encompassing 3.2 million net rentable square feet of data center space.
In December 2021, American Tower completed the CoreSite buyout, through which it acquired more than 20 data center facilities and related assets in eight U.S. markets for a total consideration of $10.4 billion, including the assumption and repayment of CoreSite’s existing debt. With this, American Tower capitalized on CoreSite’s highly interconnected data center facilities and critical cloud on-ramps and banks on the robust demand from enterprises, the cloud, network, and IT service providers in the major U.S. markets.
American Tower reports under the Property segment (98.5% of its total revenues for the nine months ended Sep 30, 2023) and the Service segment (1.5%). The Property segment includes the U.S. & Canada property, Asia-Pacific property, Africa property, Europe property and Latin America property segments and the Data Centers segment. The Service segment offers tower-related services in the United States, including site application, zoning and permitting and structural analysis, which primarily support the company’s site-leasing business, including the addition of new tenants and equipment at sites.
Note: All EPS numbers presented in this report represents funds from operations (FFO) per share. FFO, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation, amortization, and other non-cash expenses to net income.
Bottom Line
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in American Tower a decade ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in December 2013 would be worth $2,642.33, or a 164.23% gain, as of December 12, 2023. Investors should keep in mind that this return excludes dividends but includes price appreciation.
The S&P 500 rose 159.36% and the price of gold increased 55.20% over the same time frame in comparison.
Analysts are forecasting more upside for AMT too.
American Tower owns an extensive and geographically diversified communication real estate portfolio. The high capital spending by wireless carriers amid the incremental demand from global 4G and 5G deployment efforts, growing wireless penetration and spectrum auctions positions it well for growth. A resilient and stable business model assures stable revenues. The company’s continued focus on macro-tower investments to expand its global footprint and address the demand in these markets augur well for long-term growth. For 2023, we expect year-over-year growth of 3.4% and 5.7% in total revenues and adjusted EBITDA, respectively. However, customer concentration and consolidation in the wireless industry raise concerns. High interest rates add to its woes. We estimate a year-over-year rise of 23.9% in the company’s interest expenses this year.
Shares have gained 11.97% over the past four weeks and there have been 2 higher earnings estimate revisions for fiscal 2023 compared to none lower. The consensus estimate has moved up as well.
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American Tower Corporation (AMT) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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2023-12-11
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AMT
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American Eagle Outfitters announced that its Board of Directors has raised the amount of its quarterly cash dividend by 25%. The Board declared a regular quarterly cash dividend of $0.125 on December 13, 2023, payable on January 19, 2024 to stockholders of record at the close of business on January 5, 2024. "I am pleased to announce a 25% increase in our quarterly dividend, reflecting improved fundamentals and free cash flow over the course of 2023. This underscores the strength of our balance sheet and confidence in our strategic direction as we enter 2024. We remain committed to delivering sustained profitable growth and returns to our shareholders," commented Jay Schottenstein, AEO's Executive Chairman of the Board and Chief Executive Officer.
Conagra Brands, today announced that its Board of Directors approved a quarterly dividend payment of $0.35 per share of CAG common stock to be paid on February 29, 2024 to stockholders of record as of the close of business on January 30, 2024. Conagra Brands has paid consecutive quarterly dividends since January 1976.
American Tower today announced that its board of directors has declared its quarterly cash distribution of $1.70 per share on shares of the Company's common stock. The distribution is payable on February 1, 2024 to the stockholders of record at the close of business on December 28, 2023.
The Board of Directors of Xcel Energy today declared a quarterly dividend on its common stock of 52 cents per share. The dividends are payable January 20, 2024, to shareholders of record on December 28, 2023.
Toll Brothers, the nation's leading builder of luxury homes, today announced that its Board of Directors has approved a quarterly cash dividend to shareholders. The dividend of $0.21 per share will be paid on January 26, 2023 to shareholders of record on the close of business on January 12, 2023.
VIDEO: Daily Dividend Report: AEO,CAG,AMT,XEL,TOL
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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2023-12-11
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AMT
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
At first blush, the case for reliable REITs – that is, real estate investment trusts – might not seem relevant. After all, the U.S. jobs market continues to print impressive figures that beat analysts’ estimates. Still, as a Forbes article pointed out, despite a strong jobs print, recession concerns still exist.
As CNBC explained, a divergence now exists between falling oil prices, rising gold prices and a boost in the 10-Year Treasury yield. The former two events indicate that a recession may impact the U.S. economy. However, the latter indicator implies hopes for a soft landing. In other words, the ambiguity presents a case for property investment opportunities.
Thanks to their distinct structure, REITs are required to distribute at least 90% of their taxable income to shareholders as dividends. Further, these enterprises tend to align themselves with industries benefitting from predictable demand streams. Therefore, if you don’t know what may happen next, income-generating real estate makes plenty of sense.
Recession or not, it’s always nice to have passive income to mitigate against any uncertainties. With that, below are reliable REITs to consider.
Prologis (PLD)
Source: rafapress / Shutterstock.com
What it is: One of the top reliable REITs available, Prologis (NYSE:PLD) invests in logistics facilities. According to the company’s Form 10-K, Prologis is the global leader in logistics real estate with a focus on high-barrier, high-growth markets. Further, its footprint covers 19 countries across four continents. At the moment, the company carries a market capitalization of $112.7 billion.
Relevance: Because of Prologis’ focus on high-barrier markets, it may benefit from economic insulation. Put another way, a hefty commitment exists among the REIT’s tenants, making turnover less likely. Sure enough, one of the strong points in the enterprise’s financials is consistent profitability over the past 10 years. It also posts a strong three-year revenue growth rate of 13.1%.
Pros: Right now, Prologis offers a forward yield of 2.85%. While that’s a bit lower than other property investment opportunities, the track record of consecutive dividend increases stands at 10 years.
Cons: As with other income-generating real estate plays, the focus is on income rather than capital gains.
American Tower (AMT)
Source: T. Schneider / Shutterstock
What it is: Focused on the wireless and broadcast communications infrastructure field, American Tower (NYSE:AMT) features a massive footprint. According to its website, the company commands 225,000 global sites. Further, it covers 25 countries across six continents while employing around 6,000 workers. It’s also a large enterprise, featuring a market cap of nearly $96 billion, making it a comfortable prospect for reliable REITs.
Relevance: Unless you envision a world where telecommunications and wireless initiatives will regress, American Tower should be relevant. According to Precedence Research, the global wireless infrastructure market reached a valuation of just over $160 billion last year. By 2032, experts project that the sector could hit a valuation of nearly $387 billion. Just by downwind benefits, AMT ranks among the top property investment opportunities.
Pros: Combined with a growing underlying industry, AMT offers a forward dividend yield of 3.15%. As well, the company enjoys 12 years of consecutive dividend increases, making it an overall attractive idea for income-generating real estate.
Cons: While AMT rates as a strong buy, upside potential is limited based on the $217.83 average price target.
Stag Industrial (STAG)
Source: Don Pablo / Shutterstock.com
What it is: Headquartered in Boston, Massachusetts, Stag Industrial (NYSE:STAG) is one of the reliable REITs focused mainly on the e-commerce revolution. Per its website, the REIT targets acquisitions and operation of industrial properties throughout the U.S. These largely involve e-commerce and logistics properties, thus benefitting from a pertinent growth market.
Relevance: Back in the second quarter of 2020, e-commerce sales represented 16.5% of all retail transactions. Of course, that stemmed from the surge in retail revenge (basically retail therapy). However, the blistering demand faded as society acclimated to the Covid-19 crisis. However, this metric is back on the rise, hitting 15.6% as of Q3 2023. Indirectly, the upswing makes STAG an intriguing idea for property investment opportunities.
Pros: True to this theme, Stag provides a forward yield of 4.05%. Now, the payout ratio is a bit high at 183.71% even for a REIT. Nevertheless, the continued rise of e-commerce should steadily boost STAG.
Cons: With STAG having performed relatively well this year, the upside potential inherent in the analysts’ consensus target of $38.25 is limited.
Federal Realty Investment Trust (FRT)
Source: mTaira / Shutterstock.com
What it is: Based in Rockville, Maryland, Federal Realty Investment Trust (NYSE:FRT) is one of the reliable REITs investing in shopping centers in the northeastern region of the U.S. As well, Federal Realty covers the Mid-Atlantic states along with California and South Florida. Fundamentally, it enjoys a mixed geographic footprint that may enable it to benefit from millennial migration trends.
Relevance: As stated earlier, the geographic footprint should be a tailwind for Federal Realty. Per its website, its California-focused properties cover Silicon Valley and Southern California. These represent major components of the economic engine that is the Golden State. In addition, its properties in Phoenix, Arizona should add relevance to FRT as younger people move for cost-of-living reasons.
Pros: An attractive idea for property investment opportunities, FRT carries a forward yield of 4.39%. Also, it commands 56 years of consecutive dividend increases. There’s no way that management will want to give up this lofty status.
Cons: While enticing, Federal Realty lacks diverse property holdings compared to other income-generating real estate.
Agree Realty (ADC)
Source: Pavel Kapysh / Shutterstock.com
What it is: Hailing from Farmington Hills, Michigan, Agree Realty (NYSE:ADC) focuses on neighborhood shopping centers with strong anchor tenants. Though the Covid-19 crisis negatively impacted such businesses during the initial wave, society has mostly normalized. Therefore, Agree might benefit from the acclimatization along with the everyday predictable demand profile that such properties exhibit.
Relevance: Again, Agree comes down to serving everyday needs, which makes ADC a solid candidate for reliable REITs. Looking at its financials, the company posts a three-year revenue growth rate of 6.1%, beating out nearly 73% of its peers. Also, Agree unsurprisingly enjoys consistent profitability over the trailing decade. Unless you envision a future where physical shopping becomes obsolete, Agree should be considered one of the top property investment opportunities.
Pros: Right now, the REIT offers a forward dividend yield of 5%. That’s noticeably above the sector average yield of 4.46%. Also, analysts rate shares a strong buy with a $64.53 average price target.
Cons: As with Federal Realty, Agree isn’t quite as diverse as other REITs. Therefore, exposure to consumer sentiment exists.
NNN REIT (NNN)
Source: Shutterstock
What it is: One of the more riskier ideas for reliable REITs, NNN REIT (NYSE:NNN) will require patience. Per its public profile, the entity primarily invests in high-quality properties that are subject to long-term triple-net (NNN) leases. According to Investopedia, this is a type of lease agreement on a property “whereby the tenant or lessee promises to pay all the expenses of the property, including real estate taxes, building insurance, and maintenance.”
Relevance: Fundamentally, the advantage for investors of targeting NNN stock centers on the underlying long-term leases. In addition, market participants may benefit from a diversified tenant base, possibly providing economic insulation. Regarding the financials, National Retail gets the job done with a 2.4% three-year revenue growth rate. However, the real star centers on robust margins and consistent profitability.
Pros: If you’re looking for high yields, you’ve come to the right place. NNN carries a forward yield of 5.57%. In addition, the REIT commands 34 years of consecutive dividend increases.
Cons: If you’re looking for high capital gains potential, you’ve come to the wrong place. NNN is a consensus hold with a measly $41.79 average analyst price target.
Realty Income (O)
Source: Shutterstock
What it is: Another compelling but risky idea for reliable REITs, Realty Income (NYSE:O) is looking at a year-to-date loss of almost 15%. For conservative investors seeking primarily passive income, that might not cut it. However, Realty focuses on free-standing, single-tenant commercial properties tied to largely to critical businesses such as grocery stores.
Relevance: Frankly, the brands that do business with Realty Income speak inherently to the relevance of the enterprise. Unless you envision a future where humans no longer buy groceries, Realty should perform well over the long run. Also, discount retailers do business with the REIT, meaning that there could be added relevance due to the challenging environment.
Pros: When it comes to reasons for buying O stock, Realty carries two advantages. First, the company offers a robust forward yield of 5.65%, noticeably above the sector average of 4.46%. Second, it pays this passive income on a monthly basis instead of the typical quarterly basis.
Cons: Besides the market volatility, the consensus moderate buy rating is a bit lackluster. We’re talking four buys and six holds, which doesn’t scream confidence.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. Tweet him at @EnomotoMedia.
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The post Property Pillars: 7 REITs for Reliable Income in Shaky Times appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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2023-12-08
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AMT
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Below is Validea's guru fundamental report for AMERICAN TOWER CORP (AMT). Of the 22 guru strategies we follow, AMT rates highest using our Multi-Factor Investor model based on the published strategy of Pim van Vliet. This multi-factor model seeks low volatility stocks that also have strong momentum and high net payout yields.
AMERICAN TOWER CORP (AMT) is a large-cap growth stock in the Rental & Leasing industry. The rating using this strategy is 56% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
MARKET CAP: PASS
STANDARD DEVIATION: PASS
TWELVE MINUS ONE MOMENTUM: NEUTRAL
NET PAYOUT YIELD: NEUTRAL
FINAL RANK: FAIL
Detailed Analysis of AMERICAN TOWER CORP
AMT Guru Analysis
AMT Fundamental Analysis
More Information on Pim van Vliet
Pim van Vliet Portfolio
About Pim van Vliet: In investing, you typically need to take more risk to get more return. There is one major exception to this in the factor investing world, though. Low volatility stocks have been proven to outperform their high volatility counterparts, and do so with less risk. Pim van Vliet is the head of Conservative Equities at Robeco Asset Management. His research into conservative factor investing led to the creation of this strategy and the publication of the book "High Returns From Low Risk: A Remarkable Stock Market Paradox". Van Vliet holds a PhD in Financial and Business Economics from Erasmus University Rotterdam.
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Factor-Based Stock Portfolios
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About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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2023-12-08
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AMT
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The nationwide rollout of the 5G mobile network three years ago marked a critical moment in telecommunications, ushering in a new era of investment in 5G stocks. This upgrade from 4G LTE to 5G represented a quantum leap in technology, promising download speeds up to 100 times faster. Beyond the buzz of lightning-fast internet, 5G remains a powerful catalyst for cutting-edge advancements across a myriad of sectors from artificial intelligence to autonomous vehicles.
The valuation of the 5G market started at an impressive $5.53 billion in 2020 and is expected to skyrocket to an astounding $667.9 billion by 2026. Factors driving this rapid expansion include the increased adoption of virtual networking architecture and the surge in mobile data traffic. Moreover, the influence of 5G stretches beyond telecommunications, infusing sectors such as healthcare, automotive and manufacturing while promising a future woven with revolutionary technologies.
Here are three top 5G stocks for investors to focus on if they want to take advantage of the expected growth in this sector.
American Tower (AMT)
Source: T. Schneider / Shutterstock
American Tower (NYSE:AMT) boasts over 225,000 communication sites making it a colossus in the global telecom landscape and critical to the burgeoning 5G sector. As a real estate investment trust (REIT), the company leases tower space to various clients including wireless service providers, broadcasters, public sector organizations and other entities. With it operating under long-term leases of five to 10 years, the firm maintains exceptionally low churn rates, though a lease with T-Mobile (NYSE:TMUS) is currently set to expire in 2025.
Furthermore, in adherence to REIT requirements, it distributes a hefty 90% of its profits as dividends, yielding a healthy 3.2%. The third quarter saw the company outperform expectations, leading to an upward revision of its funds-from-operations per share guidance. Hence, for those eyeing dividends, AMT’s compelling 3% yield and a decade-long history of consistent payout growth make it a standout choice among 5G stocks.
T-Mobile (TMUS)
Source: Shutterstock
T-Mobile (NYSE:TMUS) is the third-largest wireless internet carrier in the U.S., dynamically expanding its customer base in its niche briskly. The company’s steadfast focus on adding postpaid wireless customers is paying off, with a clear path towards adding a remarkable 8 million customers by 2025. Notably, T-Mobile’s 5G network deployment advancement places it ahead of its primary competition, solidifying its leadership in the 5G internet rollout. T-Mobile’s board recently pivoted by authorizing a $14 billion share repurchase program, signaling a long-term strategy to buy back $60 billion in stock.
In a strategic turn, TMUS announced its first-ever dividend, which resonated positively with shareholders. The company’s financial performance in the third quarter was impressive, generating a whopping $4 billion in free cash flow (FCF), a massive 50% increase from the same period last year. This surge was attributed to reduced cash outlays for property and equipment and increased cash flow from operations. Additionally, TMUS bolstered its financial health with a rise in net income to $2.1 billion and a boost in net cash to $5.3 billion.
AT&T (T)
Source: Roman Tiraspolsky / Shutterstock.com
In the dynamic landscape of the telecom industry, AT&T (NYSE:T) emerges as a standout contender and is skillfully navigating the 5G market. Its current undervaluation presents a golden opportunity for savvy investors to scoop up the stock at just one times forward sales estimates. Additionally, the company’s strong customer loyalty highlights AT&T’s service excellence and underpins its robust financial health.
Financially, AT&T’s performance is nothing short of impressive. In the third quarter, the company saw a significant uptick in operating margins of 24.9% and an EBITDA margin jump to 43%. It expects its FCF to rise to $16.5 billion for the full year, a $500 million improvement from previous estimates.
Moreover, AT&T’s 468,000 postpaid phone net additions this quarter are a testament to its growing appeal and the effectiveness of its strategies in attracting and retaining customers. AT&T’s current market position, financial performance and growth prospects make it an appealing choice for those looking to invest in 5G stocks.
On the date of publication, Muslim Farooque did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.
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The post Telecom Titans: 3 Stocks Outperforming in the 5G Race appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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2023-12-08
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AMT
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Dec 8 (Reuters) - Activist investor Elliott Investment Management said on Friday that the exit of Crown Castle CCI.N CEO Jay Brown, who will be leaving in January, was a step in the "right direction" but more changes were needed at the wireless tower owner.
Brown led the company for more than two decades, and his departure is a major win for Elliot, which sought a management shakeup for what it said was years of underperformance.
"We look forward to continuing our dialogue," the hedge fund, which has about $2 billion stake in the company, said in a statement.
The activist investor said it wants a comprehensive review of Crown's Fiber business and a transparent search process for the next CEO.
Crown Castle, which competes with American Tower AMT.N and SBA Communications SBAC.O, did not immediately respond to a request for comment.
Board member Anthony Melone will serve as interim head while the company looks for a permanent CEO, Crown Castle said on Thursday.
This is the second time in three years Elliott has publicly tried to pressure the Houston, Texas-based company, which has a market capitalization of about $51 billion.
Elliott had first pushed for changes in 2020, when it had a $1 billion stake in the company. Crown Castle responded by refreshing its board and announcing that five long-serving directors would not seek re-election.
(Reporting by Jaspreet Singh in Bengaluru; Editing by Tasim Zahid)
((Jaspreet.Singh@thomsonreuters.com; https://twitter.com/i_jass;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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2023-12-07
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AMT
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By Nqobile Dludla
JOHANNESBURG, Dec 7 (Reuters) - IHS Holding IHS.N has offered improved commercial terms to MTN Nigeria MTNN.LG for the lease of 2,500 towers it lost to American Tower Corporation (ATC) AMT.N, saying the move would prevent network disruption in Africa's most populous country.
MTN Nigeria, owned by South Africa's MTN Group MTNJ.J announced in September that the leasing on 2,500 sites due to expire in 2024 and 2025 was awarded to ATC Nigeria after a bidding process.
The mobile network operator said the deal would diversify its towers portfolio and unlock significant network cost efficiencies.
IHS Towers Chairman and CEO Sam Darwish told Reuters that these towers represent only a small fraction of his company's total tenancies but it is willing to match ATC's terms.
"IHS has offered improved commercial terms on the 2,500 towers to close the gap (between the offers) as our main aim is to prevent network disruption in Nigeria," he said, without providing details on the terms.
MTN said the agreement with ATC is final and that MTN would continue to engage constructively with IHS on further opportunities that arise, including renewal of its other sites.
"Our preference is always for bilateral renewal, subject to competitive pricing and terms. In this instance the ATC proposal was superior," the operator told Reuters.
IHS owns 16,000 towers in Nigeria, of which 14,600 are leased by MTN. About 13% of MTN's portfolio sits with ATC, while 80% sits with IHS.
There is mounting fear that the cell-tower operator may lose more contracts as MTN Nigeria reviews other tower contracts coming up for renewal. The remaining tower leases with IHS expire between 2025 and 2029. The majority of those expire in 2029.
IHS is also embroiled in a shareholder dispute with MTN Group, its largest shareholder with a 26% stake, along with French financial investor Wendel and activist investor Blackwells Capital over governance issues.
Darwish said that IHS continues to engage with Wendel and MTN on the issues.
(Reporting by Nqobile Dludla Editing by David Goodman)
((nqobile.dludla@thomsonreuters.com; +27103461066;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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2023-12-07
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AMT
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For the past 30 years, Wall Street has had no shortage of next-big-thing investment trends to latch onto. Some of these have been game changers, such as the advent of the internet in the 1990s, while others never came close to living up to lofty expectations (e.g., consumer-level 3D printers).
No matter what happens with the U.S. economy and stock market in 2024, there are bound to be investment trends that garner the attention of professional and everyday investors.
However, today's hottest trends may not carry over into the following year. Recently, I discussed why artificial intelligence (AI) and electric vehicles (EV) are two popular trends that could face-plant next year. Thankfully, other investment trends stand at the ready to take their place.
What follows are five unstoppable trends to invest $1,000 in for 2024.
Image source: Getty Images.
1. Cybersecurity
Perhaps the most surefire trend investors can continue to count on in the upcoming year is cybersecurity. Regardless of how well or poorly the U.S. economy and stock market perform, hackers and robots don't take time off from trying to steal sensitive business or customer information. Any company that has an online or cloud-based presence requires protection, and this is increasingly falling into the hands of third-party providers.
The cream of the crop in cybersecurity looks to be CrowdStrike Holdings (NASDAQ: CRWD). CrowdStrike's cloud-native security platform, known as Falcon, relies on AI and machine learning (ML) solutions to become more effective at identifying and responding to potential end-user threats over time. Falcon is overseeing trillions of events each week.
Despite being a pricier cloud-based, software-as-a-service (SaaS) solution than many of its peers, CrowdStrike's gross retention rate is superior. Moreover, 63% of its ever-growing client base has purchased at least five or more cloud-module subscriptions.
Don't overlook Okta (NASDAQ: OKTA), either. Despite the negative press associated with a recent security breach, identity-verification company Okta is also relying on AI and ML to steadily improve the efficiency of its cybersecurity solutions.
In particular, the acquisition of Auth0 opens new doors in international markets for Okta, as well as gives the company a firmer foundation to build on its Customer Identity segment, which is a $30 billion addressable market, according to the company.
2. Gene editing
A second potentially unbeatable trend to consider putting $1,000 to work in for 2024 is gene editing.
Generally speaking, investors don't have to dig too deeply to find exciting and promising new research in the drug-development space. Gene editing just happens to be one of the more revolutionary approaches.
As its name suggests, gene editing involves the "editing" of targeted DNA. A small piece of guide ribonucleic acid (RNA) is attached to an enzyme (e.g., the Cas9 enzyme) and introduced into target cells. The enzyme then "cuts" the DNA at the targeted location. The belief among the scientific community is that gene editing could be a successful approach to treating single-gene disorders, which include cystic fibrosis.
What really puts gene editing on the map as a hot investment trend for 2024 is the approval of Casgevy (formerly exa-cel) in the U.K., i.e., the very first approval anywhere for a gene-editing drug. On Nov. 16, Vertex Pharmaceuticals (NASDAQ: VRTX) and CRISPR Therapeutics (NASDAQ: CRSP) announced the groundbreaking approval of Cas9 gene-editing therapy Casgevy for the treatment of sickle cell disease and transfusion-dependent beta thalassemia. With label-expansion opportunities and approvals awaiting in other regions, including the U.S., this gene-editing treatment developed by Vertex and CRISPR has the potential to top $1 billion in annual sales.
It's worth noting that gene editing may also hold promise beyond single-gene diseases. It's being examined by CRISPR Therapeutics as a treatment for a variety of cancer types.
Image source: Getty Images.
3. Financial technology (fintech)
The third unstoppable trend you can confidently invest $1,000 in for 2024 is financial technology, which you probably know better as "fintech." Fintech involves the use of software or technology to facilitate banking and lending services.
Based on a report from Boston Consulting Group that was issued in May, global fintech revenue is expected to catapult by more than 500% to $1.5 trillion by 2030. This type of growth isn't hard to believe considering that many of the world's emerging markets are still underbanked, including Southeastern Asia, the Middle East, and Africa. Mobile-based payments and lending solutions may be the answer to bridging this lack of access to basic financial services.
PayPal Holdings (NASDAQ: PYPL) currently finds itself in the driver's seat in the fintech space. Even with an above-average inflation rate weighing on the purchasing power of lower-earning workers, PayPal has seen its total payment volume (TPV) grow by a double percentage, without fail, on a currency-neutral basis.
Furthermore, PayPal's active users are more engaged than ever. This is a particularly important point given that PayPal's top platforms (PayPal and Venmo) are driven by transaction fees. In other words, more transactions will equate to higher gross profit for the company. In less than three years, PayPal's active customers have increased their average number of transactions completed over the trailing-12-months from 40.9 to 56.6.
Even in a challenging economic climate, fintech stocks would be expected to sustain growth in TPV.
4. Data-center economy
A fourth seemingly invincible trend to invest $1,000 in for next year is the data-center economy. By this, I mean almost anything that's directly or indirectly tied to the growing demand for data centers.
As the world becomes more digitized and data gets moved into the cloud at an accelerated pace, demand for everything from physical facilities that house data-center server towers to the host of solutions powering this expansion will fuel the data-center economy.
Perhaps the safest way to play this expansion is with real estate investment trust (REIT) American Tower (NYSE: AMT). Just days before 2021 came to a close, American Tower completed its acquisition of CoreSite Realty, which owned 25 data centers at the time. Purchasing properties and leasing them out for extended periods usually leads to highly predictable operating cash flow and a market-topping yield for REITs.
The puzzle pieces are also in place for storage stocks to rebound nicely in 2024. Companies like Western Digital (NASDAQ: WDC) are well positioned to take advantage of the growing storage needs presented by data-center expansion. Though hard-disk drives have been a staple in data centers for as far back as the eye can see, Western Digital's NAND flash-memory solutions have the potential to become the new standard in enterprise data centers.
For investors with a higher tolerance for risk, Amazon (NASDAQ: AMZN) and Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) present smart ways to play the burgeoning data-center economy. Amazon Web Services (AWS) and Google Cloud respectively accounted for 31% and 10% of global cloud infrastructure-service spending in the third quarter -- and enterprise cloud spending is still in its early innings.
5. Small-cap investing
As of this time last month, megacap tech stocks were outperforming small-cap stocks by the largest margin on record -- yes, even more than during the dot-com bubble in the early 2000s. While this, in some way, speaks to the time-tested nature of brand-name businesses, it also suggests a generational buying opportunity awaits small-cap investors.
As of the closing bell on Dec. 5, the benchmark S&P 500, which houses mostly large-cap and megacap components, had a forward price-to-earnings (P/E) ratio of 18.7. This is roughly the midpoint of where the broad-based index has traded on a forward-earnings basis over the past 25 years.
Meanwhile, the S&P 600, which is comprised of small-cap companies, had a forward P/E ratio of 13.2, which isn't too far from its 25-year low. In my view, this makes small-cap stocks a bargain, and 2024 could be the year value investors wake up to this realization.
A perfect example of a small-cap company with the potential for multiple expansion is furniture retailer Lovesac (NASDAQ: LOVE). Whereas traditional furniture retailers offer little in the way of true product differentiation and are heavily reliant on foot traffic into physical stores, Lovesac has resolved these headwinds.
Lovesac's sactionals (modular couches) are unique in that they can be rearranged to fit most living spaces, have more than 200 different cover choices, come with an assortment of upgrade options, and use recycled plastic water bottles for their yarn. That's functionality, optionality, and eco-friendliness all rolled into one.
Furthermore, Lovesac's omnichannel sales platform features a burgeoning online presence, pop-up showrooms, and a couple of brand-name partnerships. With lower overhead expenses and a reduced reliance on brick-and-mortar stores, Lovesac has handily outperformed its peers. This should continue in 2024 and beyond.
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Sean Williams has positions in Alphabet, Amazon, Lovesac, PayPal, Vertex Pharmaceuticals, and Western Digital. The Motley Fool has positions in and recommends Alphabet, Amazon, American Tower, CRISPR Therapeutics, CrowdStrike, Okta, PayPal, and Vertex Pharmaceuticals. The Motley Fool recommends Lovesac and recommends the following options: long January 2026 $180 calls on American Tower, short December 2023 $67.50 puts on PayPal, and short January 2026 $185 calls on American Tower. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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2023-12-05
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AMT
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The year 2023 was not great for telecom companies or their hardware providers. After heavy spending in 2021 and 2022, many firms dialed back investments this year. On the consumer side, sales of smartphones dipped after last year’s record pace. Despite the dip, several 5G stocks have risen up and gained a ton of value.
This momentary lull represents an opportunity. It’s no secret that more and more of the world’s work, learning, and commerce is taking place online. That’s especially true in many fast-growing emerging markets. These three 5G stocks are set to cash in as that shift continues.
Qualcomm (QCOM)
Source: Akshdeep Kaur Raked / Shutterstock.com
What’s beyond 5G? Naturally, that would be 6G. This leads us to Qualcomm (NASDAQ:QCOM), which is the long-running innovator in this space.
Indeed, the communications-focused chip giant built its fortune from developing and licensing out the technology behind 3G and 4G to telecom companies and smartphone makers. Qualcomm is at the forefront of 5G technology today, along with its other businesses that it has developed such as its Snapdragon computing platform.
While most people are still focused on rolling out 5G, Qualcomm is already hard at work on 6G. It released a lengthy presentation highlighting the path to 6G deployment by 2030.
Qualcomm isn’t just about faster cell phone communications, though. The company is also a leader in developing AI-enabled chips for mobile applications. This should, over time, allow developers to harness the power of AI for phones, connected cars, and other such devices.
Corning (GLW)
Source: madamF / Shutterstock.com
There is a conception that 5G works entirely through the air. But, on the contrary, data still travels through fiber-optic cables before getting to a tower for last-mile distribution via 5G to the end user. In other words, to have more mobile data and 5G penetration, the world needs a lot more fiber-optics.
Specialty glass and ceramics maker Corning (NYSE:GLW) is set to reap much of the benefits from this demand. And it’s not just that legacy business, either.
Corning has leaned into the 5G market opportunity with its SpiderCloud small cell Enterprise Radio Access Network (E-RAN). This allows businesses such as office towers and sports venues to deploy on-premise 5G and gives them the central units, radios, and accompanying software for operating these networks.
GLW stock gives investors this 5G access at a reasonable price. Shares go for 17 times forward earnings and offer a generous 3.9% dividend yield.
American Tower (AMT)
Source: T. Schneider / Shutterstock
Another way to profit from the spread of 5G is through owning the facilities themselves. American Tower (NYSE:AMT) is the leading real estate investment trust (REIT) focused on data centers and towers.
American Tower owns more than 220,000 cell phone towers around the world. More than 40,000 of these are in the United States and these generate about half of the company’s revenues. The firm operates far more towers in emerging markets such as Brazil and India which generate less revenue today but have more growth potential as internet usage and spending power rise in those markets.
American Tower also made a big acquisition in data centers. This gives the firm more exposure to the overall growth of the communications market. American Tower’s large size and access to relatively cheap capital give it a sustainable competitive advantage over its smaller peers. As the need for mobile data inexorably grows, American Tower will capture more of that revenue.
On the date of publication, Ian Bezek held a long position in QCOM and AMT stock. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Ian Bezek has written more than 1,000 articles for InvestorPlace.com and Seeking Alpha. He also worked as a Junior Analyst for Kerrisdale Capital, a $300 million New York City-based hedge fund. You can reach him on Twitter at @irbezek.
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The post 5G and Beyond: 3 Companies Innovating at the Edge of Connectivity appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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2023-12-04
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AMT
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Below is Validea's guru fundamental report for AMERICAN TOWER CORP (AMT). Of the 22 guru strategies we follow, AMT rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. This growth model looks for low book-to-market stocks that exhibit characteristics associated with sustained future growth.
AMERICAN TOWER CORP (AMT) is a large-cap growth stock in the Rental & Leasing industry. The rating using this strategy is 55% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
BOOK/MARKET RATIO: PASS
RETURN ON ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS VS. RETURN ON ASSETS: PASS
RETURN ON ASSETS VARIANCE: PASS
SALES VARIANCE: PASS
ADVERTISING TO ASSETS: FAIL
CAPITAL EXPENDITURES TO ASSETS: FAIL
RESEARCH AND DEVELOPMENT TO ASSETS: FAIL
Detailed Analysis of AMERICAN TOWER CORP
AMT Guru Analysis
AMT Fundamental Analysis
More Information on Partha Mohanram
Partha Mohanram Portfolio
About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Sometimes research that changes the investing world can come from the halls of academia. Partha Mohanram is a great example of this. While academic research has shown that value investing works over time, it has found the opposite for growth investing. Mohanram turned that research on its head by developing a growth model that produced significant market outperformance. His research paper "Separating Winners from Losers among Low Book-to-Market Stocks using Financial Statement Analysis" looked at the criteria that can be used to separate growth stocks that continue their upward trajectory from those that don't. Mohanram is currently the John H. Watson Chair in Value Investing at the University of Toronto and was previously an Associate Professor at the Columbia Business School.
Additional Research Links
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Factor-Based Stock Portfolios
Dividend Aristocrats 2023
High Insider Ownership Stocks
Top S&P 500 Stocks
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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2023-12-04
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AMT
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Last Friday, all of the three widely followed indexes closed a fifth straight winning week. The tech-heavy Nasdaq Composite, the S&P 500 and the Dow Jones Industrial Average jumped 0.4%, 0.8% and 2.4%, respectively. On Thursday, the markets closed out a winning November after three straight months of losses.
Weak economic data and inflation slowing down over the last few weeks have raised hope among investors that the Fed might have finally concluded its rate-hike cycle. The Fed’s favorite inflation metric, PCE, also showed signs of slowing down last week, and third-quarter GDP was revised upward to lift investor mood. Dovish comments coming in from top Fed officials have suggested that the central bank will be extremely cautious before raising rates any further.
In fact, Fed Chair Jerome Powell said that the risk of raising interest rates at the current juncture is too much. Market participants are getting into a usual Santa rally and are currently expecting interest rates to go down as early as the first half of 2024.
Regardless of market conditions, we, here at Zacks, provide investors with unbiased guidance on how to beat the market.
As usual, Zacks Research guided investors over the past three months with its time-tested methodologies. Given the prevailing market uncertainty, you may want to look at our feats to prepare better for your next action.
Here are some of our key achievements:
Pinterest and United Bankshares Surge Following Zacks Rank Upgrade
Shares of Pinterest, Inc. PINS have gained 28.7% (versus the S&P 500’s 6.7% increase) since it was upgraded to a Zacks Rank #1 (Strong Buy) on October 3.
Another stock, United Bankshares, Inc. UBSI, which was upgraded to a Zacks Rank #2 (Buy) on October 2, has returned 25.2% (versus the S&P 500’s 6.6% increase) since then.
Zacks Rank, our short-term rating system, has earnings estimate revisions at its core. Empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
A hypothetical portfolio of Zacks Rank #1 (Strong Buy) stocks returned +12.02% this year (through September 4th) vs. +18.2% for the S&P 500 index and +7.6% for the equal-weight S&P 500 index. The portfolio of Zacks Rank #1 stocks is an equal-weight portfolio, while the S&P 500 index is a market-cap-weighted index that has been notably distorted by the strong recent performance of mega-cap stocks.
We are not trying to cherry-pick here. But since this Zacks Model portfolio, consisting of Zacks Rank #1 stocks, is an equal-weight portfolio, the equal-weight S&P 500 index is the appropriate benchmark for comparison. Looked at this way, this portfolio has outperformed the index this year.
The Zacks Model Portfolio - consisting of Zacks Rank #1 stocks – has outperformed the S&P index by more than 13 percentage points since 1988 (Through September 4th, 2023, the Zacks # 1 Rank stocks has generated an annualized return of +24.17% since 1988 vs. +10.82% for the S&P 500 index).You can see the complete list of today’s Zacks Rank #1 stocks here >>>
Check Pinterest’s historical EPS and Sales here>>>
Check United Bankshares’ historical EPS and Sales here>>>
Image Source: Zacks Investment Research
Zacks Recommendation Upgrades Installed Inter and XPO Higher
Shares of Inter & Co, Inc. INTR and XPO, Inc. XPO have advanced 24.5% (versus the S&P 500’s 6.6% rise) and 21.3% (versus the S&P 500’s 7.4% rise) since their Zacks Recommendation was upgraded to Outperform on October 2 and October 6, respectively.
While the Zacks Rank is our short-term rating system that is most effective over the one- to three-month holding horizon, the Zacks Recommendation aims to predict performance over the next 6 to 12 months. However, just like the Zacks Rank, the foundation for the Zacks Recommendation is trends in earnings estimate revisions.
The Zacks Recommendation classifies stocks into three groups — Outperform, Neutral and Underperform. While these recommendations are determined quantitatively, our analysts have the flexibility to override them for the 1100+ stocks they closely follow based on their better judgment of factors such as valuation, industry conditions and management effectiveness than the quantitative model.
To access our research reports with Zacks Recommendations for the 1100+ stocks we cover, click here>>>
Zacks Focus List Stocks Block, Uber Shoot Up
Shares of Block, Inc. SQ, which belongs to the Zacks Focus List, have gained 22.5% over the past 12 weeks. The stock was added to the Focus List on March 28, 2017. Another Focus-List holding, Uber Technologies, Inc. UBER, which was added to the portfolio on August 16, 2019, has returned 21.4% over the past 12 weeks. The S&P 500 has advanced 3.1% over this period.
The 50-stock Zacks Focus List model portfolio returned +22.3% in 2023 (through July 31st) vs. +20.6% for the S&P 500 index and +10.5% for the equal-weight S&P 500 index. In 2022, the portfolio produced -15.2% vs. the S&P 500 index’s -17.96%.
Since 2004, the Focus List portfolio has produced an annualized return of +11.27% through July 31st, 2023. This compares to a +9.65% annualized return for the S&P 500 index in the same time period.
On a rolling one-, three- and five-year bases, the Zacks Focus List returned +21.76%, +16.33%, and +12.54% vs. +12.99%, +13.71% and +12.19% for the S&P 500 index, respectively.
Unlock all of our powerful research, tools and analysis, including the Focus List, Zacks #1 Rank List, Equity Research Reports, Zacks Earnings ESP Filter, Premium Screener and more, as part of Zacks Premium. Gain full access now >>
Zacks ECAP Stocks Fair Isaac and Rollins Make Significant Gains
Fair Isaac Corporation FICO, a component of our Earnings Certain Admiral Portfolio (ECAP), has jumped 25.3% over the past 12 weeks. Rollins, Inc. ROL has followed Fair Isaac with 13.3% returns.
ECAP, which consists of 30 concentrated, ultra-defensive, long-term Buy-and-Hold stocks, has returned +6.67% in 2023 (through June 30) versus +16.90% for the S&P 500 Index. The portfolio returned -4.7% in 2022 versus the S&P 500 Index’s -17.96%.
With little to no turnover and annual rebalance periodicity, the ECAP seeks to minimize capital loss by holding shares of companies whose earnings streams exhibit a proven 20+ year track record of surviving recessionary periods with minimal impact on aggregate earnings growth relative to the overall S&P 500.
The ECAP and many other model portfolios are available as part of Zacks Advisor Tools, a cloud-based solution to access Zacks award-winning stock, mutual fund and ETF research. Click here to schedule a demo.
Zacks ECDP Stocks American Tower and Fastenal Outperform Peers
American Tower Corporation AMT, which is part of our Earnings Certain Dividend Portfolio (ECDP), has returned 16.4% over the past 12 weeks. Another ECDP stock, Fastenal Company FAST, has climbed 11.6% over the same time frame. Of course, the inclination of investors toward quality dividend stocks to secure an income stream amid heightened market volatility contributed to this performance.
Check American Tower’s dividend history here>>>
Check Fastenal’s dividend history here>>>
With an extremely low Beta and a history of minimum earnings variability over the last 20+ years, this 25-stock portfolio helps significantly mitigate risk.
ECDP has returned +0.18% in 2023 (through June 30) versus +16.90% for the S&P 500 Index. The portfolio returned -2.3% in 2022 versus -17.96% for the S&P 500 Index and -8.34% for the ProShares S&P 500 Dividend Aristocrats ETF NOBL.
Click here to access this portfolio on Zacks Advisor Tools.
Zacks Top 10 Stocks — Celsius Delivers Solid Returns
Celsius Holdings, Inc. CELH, from the Zacks Top 10 Stocks for 2023, has surged 49.9% year to date, which compares to a 21.3% gain for the S&P 500 Index.
The portfolio returned +16.16% through the end of July 2023 vs. +20.64% for the S&P 500 index and +10.73% for the equal-weighted version of the index. The portfolio returned -15.8% in 2022 vs. -18.1% for the S&P 500 index. Since 2012, the Top 10 portfolio has generated an annualized return of +22.78% vs. +13.65% for the S&P 500 index.
Since the start of 2012 through July 31, 2023, the Zacks Top 10 Stocks have produced a cumulative return of +977.47% vs. +340.35% cumulative return for the S&P 500 index.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s credited with a “watershed medical breakthrough” and is developing a bustling pipeline of other projects that could make a world of difference for patients suffering from diseases involving the liver, lungs, and blood. This is a timely investment that you can catch while it emerges from its bear market lows.
It could rival or surpass other recent Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
American Tower Corporation (AMT) : Free Stock Analysis Report
Fastenal Company (FAST) : Free Stock Analysis Report
Fair Isaac Corporation (FICO) : Free Stock Analysis Report
Rollins, Inc. (ROL) : Free Stock Analysis Report
United Bankshares, Inc. (UBSI) : Free Stock Analysis Report
XPO, Inc. (XPO) : Free Stock Analysis Report
Block, Inc. (SQ) : Free Stock Analysis Report
ProShares S&P 500 Dividend Aristocrats ETF (NOBL): ETF Research Reports
Celsius Holdings Inc. (CELH) : Free Stock Analysis Report
Pinterest, Inc. (PINS) : Free Stock Analysis Report
Uber Technologies, Inc. (UBER) : Free Stock Analysis Report
Inter & Co. Inc. (INTR) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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2023-11-30
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AMT
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares U.S. Real Estate ETF (Symbol: IYR) where we have detected an approximate $163.7 million dollar inflow -- that's a 5.7% increase week over week in outstanding units (from 34,100,000 to 36,050,000). Among the largest underlying components of IYR, in trading today American Tower Corp (Symbol: AMT) is up about 0.3%, Equinix Inc (Symbol: EQIX) is up about 0.1%, and Welltower Inc (Symbol: WELL) is lower by about 0.4%. For a complete list of holdings, visit the IYR Holdings page » The chart below shows the one year price performance of IYR, versus its 200 day moving average:
Looking at the chart above, IYR's low point in its 52 week range is $72.88 per share, with $96.02 as the 52 week high point — that compares with a last trade of $84.06. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs had notable inflows »
Also see:
Dividend Paying Stocks
OVID Average Annual Return
Funds Holding WWOW
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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2023-11-30
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AMT
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American Tower Corp (Symbol: AMT) has been named as a Top 25 ''Dividend Giant'' by ETF Channel, with a staggering $14.86B worth of stock held by ETFs, and above-average ''DividendRank'' statistics including a strong 3.14% yield, according to the most recent Dividend Channel ''DividendRank'' report. The report noted a strong quarterly dividend history at American Tower Corp, and favorable long-term multi-year growth rates in key fundamental data points.
The annualized dividend paid by American Tower Corp is $6.48/share, currently paid in quarterly installments, and its most recent dividend ex-date was on 10/10/2023. Below is a long-term dividend history chart for AMT, which the report stressed as being of key importance. Indeed, studying a company's past dividend history can be of good help in judging whether the most recent dividend is likely to continue.
25 Dividend Giants Widely Held By ETFs »
Also see:
High-Yield Canadian Energy Stocks
SNDL YTD Return
SOLY shares outstanding history
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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2023-11-29
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AMT
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It has been about a month since the last earnings report for Vornado (VNO). Shares have added about 21.1% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Vornado due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Vornado's FFO Meets Estimates in Q3, Revenues Miss
Vornado Realty's third-quarter 2023 FFO plus assumed conversions as adjusted per share of 66 cents matched the Zacks Consensus Estimate. However, the figure declined 18.5% year over year.
Results displayed lower-than-anticipated revenues. A rise in operating expenses during the quarter was a concern.
Total revenues came in at $451 million in the reported quarter, missing the Zacks Consensus Estimate of $460 million. On a year-over-year basis, revenues declined nearly 1.4%.
Quarter in Detail
In the reported quarter, total same-store NOI (at share) came in at $271.3 million compared with the prior-year quarter’s $279.8 million. The metric for the New York and 555 California Street portfolios improved 4% and 2.9%, respectively. However, the same-store NOI (at share) for THE MART portfolio declined 54% from the prior-year period.
Operating expenses increased 5.5% to $233.7 million year over year.
During the quarter, in the New York office portfolio, 236,000 square feet of office space (190,000 square feet at share) was leased for an initial rent of $93.33 per square foot and a weighted average lease term of 7.9 years. The tenant improvements and leasing commissions were $12.87 per square foot per annum or 13.8% of the initial rent.
In the New York retail portfolio, 29,000 square feet were leased (21,000 square feet at share) at an initial rent of $373.28 per square foot and a weighted average lease term of 8.4 years. The tenant improvements and leasing commissions were $26.02 per square foot per annum or 7% of the initial rent.
Additionally, at THE MART, 68,000 square feet of space (63,000 square feet at share) was leased for an initial rent of $54.71 per square foot and a weighted average lease term of 5.2 years. The tenant improvements and leasing commissions were $10.46 per square foot per annum or 19.1% of the initial rent.
Vornado ended the quarter with occupancy in the New York portfolio at 89.9%, down 40 basis points (bps) year over year. Occupancy in THE MART declined to 76.8% from 87.3%. Further, occupancy in 555 California Street also declined 20 bps to 94.5%.
Portfolio Activity
On Aug 28, 2023, Vornado entered into Manhattan’s first public-private partnership venture with Hudson Pacific Properties, Blackstone, the City of New York and New York City Economic Development Corporation to build a 266,000-square-foot purpose-built studio campus at Pier 94 with a joint investment of around $350 million.
Balance Sheet
Vornado exited third-quarter 2023 with cash and cash equivalents of $1 billion, down from $1.1 million as of Jun 30, 2023.
During the quarter ended Sep 30, 2023, it repurchased 302,200 common shares for $5.9 million at an average price of $19.61 per share.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month.
VGM Scores
At this time, Vornado has a poor Growth Score of F, a grade with the same score on the momentum front. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Notably, Vornado has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Vornado belongs to the Zacks REIT and Equity Trust - Other industry. Another stock from the same industry, American Tower (AMT), has gained 14.1% over the past month. More than a month has passed since the company reported results for the quarter ended September 2023.
American Tower reported revenues of $2.82 billion in the last reported quarter, representing a year-over-year change of +5.5%. EPS of $1.26 for the same period compares with $2.36 a year ago.
American Tower is expected to post earnings of $2.33 per share for the current quarter, representing a year-over-year change of -0.4%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for American Tower. Also, the stock has a VGM Score of F.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s credited with a “watershed medical breakthrough” and is developing a bustling pipeline of other projects that could make a world of difference for patients suffering from diseases involving the liver, lungs, and blood. This is a timely investment that you can catch while it emerges from its bear market lows.
It could rival or surpass other recent Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Vornado Realty Trust (VNO) : Free Stock Analysis Report
American Tower Corporation (AMT) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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2023-11-29
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AMT
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Below is Validea's guru fundamental report for AMERICAN TOWER CORP (AMT). Of the 22 guru strategies we follow, AMT rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. This growth model looks for low book-to-market stocks that exhibit characteristics associated with sustained future growth.
AMERICAN TOWER CORP (AMT) is a large-cap growth stock in the Rental & Leasing industry. The rating using this strategy is 55% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
BOOK/MARKET RATIO: PASS
RETURN ON ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS VS. RETURN ON ASSETS: PASS
RETURN ON ASSETS VARIANCE: PASS
SALES VARIANCE: PASS
ADVERTISING TO ASSETS: FAIL
CAPITAL EXPENDITURES TO ASSETS: FAIL
RESEARCH AND DEVELOPMENT TO ASSETS: FAIL
Detailed Analysis of AMERICAN TOWER CORP
AMT Guru Analysis
AMT Fundamental Analysis
More Information on Partha Mohanram
Partha Mohanram Portfolio
About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Sometimes research that changes the investing world can come from the halls of academia. Partha Mohanram is a great example of this. While academic research has shown that value investing works over time, it has found the opposite for growth investing. Mohanram turned that research on its head by developing a growth model that produced significant market outperformance. His research paper "Separating Winners from Losers among Low Book-to-Market Stocks using Financial Statement Analysis" looked at the criteria that can be used to separate growth stocks that continue their upward trajectory from those that don't. Mohanram is currently the John H. Watson Chair in Value Investing at the University of Toronto and was previously an Associate Professor at the Columbia Business School.
Additional Research Links
Top Large-Cap Growth Stocks
Factor-Based Stock Portfolios
Dividend Aristocrats 2023
High Insider Ownership Stocks
Top S&P 500 Stocks
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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2023-11-26
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AMT
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By Svea Herbst-Bayliss
Nov 26 (Reuters) - Elliott Investment Management, a large shareholder in Crown Castle International CCI.N, plans to speak with the wireless tower owner about ways to boost its share price, two people familiar with the matter said on Sunday.
It is the second time that the U.S. activist hedge fund has sought to pressure Crown Castle for change. Three years ago, it asked management to rethink its fiber infrastructure strategy and criticized the company's returns.
At the time, Elliott said it controlled an economic interest of $1 billion in the Houston, Texas-headquartered company. Elliott currently has a stake worth more than $2 billion, the people said.
They declined to be identified as the discussions were private.
A spokesperson for Elliott declined to comment. Crown Castle, which is a real estate investment trust, did not immediately respond to a request for comment.
The Wall Street Journal first reported Elliott's fresh push for changes.
Crown Castle's share price has tumbled 25% for the year to date, hurt in part due to costs related to its fiber program. By comparison, American Tower AMT.N shares have fallen 6% while SBA Communications SBAC.O have slid 16% during the same period.
Crown Castle's shares have lost almost half of their value since hitting an all-time high of $209 in early January, 2022.
Three years ago, Crown Castle responded to Elliott's prodding by refreshing its board of directors and announcing a mandatory board-retirement policy.
The window for investors to nominate directors to the board, something activist shareholders often do, opens early next year.
(Reporting by Svea Herbst-Bayliss in New York and Baranjot Kaur in Bengaluru; Editing by Edwina Gibbs)
((svea.herbst@thomsonreuters.com; +617 233 2138; Reuters Messaging: svea.herbst.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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2023-11-25
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AMT
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Below is Validea's guru fundamental report for AMERICAN TOWER CORP (AMT). Of the 22 guru strategies we follow, AMT rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. This growth model looks for low book-to-market stocks that exhibit characteristics associated with sustained future growth.
AMERICAN TOWER CORP (AMT) is a large-cap growth stock in the Rental & Leasing industry. The rating using this strategy is 55% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
BOOK/MARKET RATIO: PASS
RETURN ON ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS VS. RETURN ON ASSETS: PASS
RETURN ON ASSETS VARIANCE: PASS
SALES VARIANCE: PASS
ADVERTISING TO ASSETS: FAIL
CAPITAL EXPENDITURES TO ASSETS: FAIL
RESEARCH AND DEVELOPMENT TO ASSETS: FAIL
Detailed Analysis of AMERICAN TOWER CORP
AMT Guru Analysis
AMT Fundamental Analysis
More Information on Partha Mohanram
Partha Mohanram Portfolio
About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Sometimes research that changes the investing world can come from the halls of academia. Partha Mohanram is a great example of this. While academic research has shown that value investing works over time, it has found the opposite for growth investing. Mohanram turned that research on its head by developing a growth model that produced significant market outperformance. His research paper "Separating Winners from Losers among Low Book-to-Market Stocks using Financial Statement Analysis" looked at the criteria that can be used to separate growth stocks that continue their upward trajectory from those that don't. Mohanram is currently the John H. Watson Chair in Value Investing at the University of Toronto and was previously an Associate Professor at the Columbia Business School.
Additional Research Links
Top NASDAQ 100 Stocks
Factor-Based ETF Portfolios
Harry Browne Permanent Portfolio
Ray Dalio All Weather Portfolio
High Shareholder Yield Stocks
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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2023-11-23
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AMT
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The nationwide launch of fifth-generation (5G) wireless networks three years ago heralded the start of a new investment cycle. It marked the first time in over a decade that wireless carriers had significantly upgraded their infrastructure. Going from 4G LTE to 5G means the potential for a massive increase in download speeds, possibly 100 times greater! This lead us to creating this list of 5G stocks to buy.
For mobile phone users, the change promises to meet their data-hungry demands for greater bandwidth. For the carriers, it promises more profits as data usage tends to be the most profitable portion of their business. The revolution should usher in a device replacement cycle that could last for years.
What follows are a trio of the top undervalued 5G stocks you can buy for your portfolio today.
AT&T (T)
Source: Lester Balajadia / Shutterstock.com
There is no good reason the market hung up on Ma Bell. AT&T (NYSE:T) is perfectly positioned to capitalize on the trends sweeping the industry. However, since the market chooses to offer up the telecom at a discount, investors should not hesitate to buy.
Customers love AT&T’s service. Its phone churn rate of 0.79% last quarter shows they stick with the carrier after signing up for service. In comparison, Verizon (NYSE:VZ) reported its churn was 0.85%. The carrier says managing churn “is critical to our ability to maximize revenue growth and to maintain and improve margins.” Operating margins improved 90 basis points to 24.9% in the latest period while EBITDA margin jump to 43% from 40.8% a year ago.
AT&T added yet another 468,000 postpaid phone net additions this quarter. That’s a metric the industry uses to signify a company’s success at attracting customers and generating dependable revenue streams. It’s now has 8.7 million postpaid phone adds over the last three years compared to fewer than 1 million in the three years prior to 2020.
AT&T trades at six times earnings estimates, a fraction of sales, and a deeply discounted seven times free cash flow (FCF). These are incredibly cheap valuations, even for telecoms.
T-Mobile (TMUS)
Source: Shutterstock
Rival carrier T-Mobile (NYSE:TMUS) might not be as deep into the bargain bin as Ma Bell, but the “Un-carrier” is still deceptively cheap. Wall Street forecasts the telecom will grow earnings at a blistering 67% annually for the next five years. Both AT&T and Verizon are essentially expected to see negligible growth. That means T-Mobile trades at just 0.3 times its earnings growth rate. It also just became the largest prepaid carrier when it finished the third quarter with 21.6 million compared to Verizon’s 21.4 million.
T-Mobile is only just ramping up its growth. Adjusted FCF grew to $4 billion this past quarter, a 94% increase from last year. It now expects FCF to be between $13.4 billion and $13.6 billion for the full year. It’s also notable the telecom now pays a dividend.
Announced last quarter, it yields a paltry 0.4% annually (the first payment will be in December). In contrast, AT&T yields 7% while Verizon’s yields 7.3%. However, it’s part of a larger capital allocation program. T-Mobile promised to return $19 billion to shareholders throughout the next five quarters. Dividends would be $3.75 billion between Oct. 1 and Dec. 31, 2024. The remainder would be share buybacks.
The Un-carrier is an unusual opportunity for investors looking to cash in on the industry’s future growth.
American Tower (AMT)
Source: T. Schneider / Shutterstock
Not a carrier, real estate investment trust (REIT) American Tower (NYSE:AMT) is still essential to and will benefit from the 5G boom. As its name suggests, the REIT leases space on its towers primarily to wireless service providers, but also to radio and TV broadcasters, wireless data providers and the government.
American Tower operates under long-term leases of between five to 10 years. It has historically low churn rates of just 1% to 2%, though it expects rates to be higher through 2025. Obligations it has with T-Mobile will see a number of those leases expire and not renew. After adding a tenant, American Tower incurs little additional cost. That means it enjoys high profits margins with little fluctuation. Trailing gross margins are north of 71% while operating margins are 31.7%.
The stock is down 10% over the last year. Inflation impacted American Tower’s performance, like other REITs. Yet, similar to all REITs, American Tower still has to pay out at least 90% of its profits as dividends. Its dividend currently yields a healthy 3.2%. If inflation eases, expect its profits to soar. That makes this undervalued REIT a 5G stock to buy now, and it more than earned its spot on our list of 5G stocks to buy.
On the date of publication, Rich Duprey held a LONG position in T stock. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Rich Duprey has written about stocks and investing for the past 20 years. His articles have appeared on Nasdaq.com, The Motley Fool, and Yahoo! Finance, and he has been referenced by U.S. and international publications, including MarketWatch, Financial Times, Forbes, Fast Company, USA Today, Milwaukee Journal Sentinel, Cheddar News, The Boston Globe, L’Express, and numerous other news outlets.
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The post 3 5G Stocks to Buy Before Wall Street Catches Up appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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2023-11-21
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AMT
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Investing directly in real estate properties requires a large amount of capital and many other resources that most average investors cannot access. But, for investors looking to gain exposure to the real estate market and the many benefits of real estate investing, REITs (real estate investment trusts) are the way to go. They offer investors exposure to real estate and the mortgage industry, serving growth potential. If you’re looking to diversify your portfolio with REIT ETFs, look no further.
Below, I discuss three different REIT ETFs that offer investors looking for safe and reliable returns in the real estate and mortgage markets some great options to check out.
iShares Mortgage Real Estate Capped ETF (REM)
Source: Sundry Photography / Shutterstock.com
iShares Mortgage Real Estate Capped ETF (NYSEARCA:REM) is a fund composed of companies that engage in selling mortgage servicing rights and other loan types, such as mortgage-backed securities, which are home loans that are bundled together and investors who are holding mortgage-backed securities will receive interest payments on those loans on a predictable basis. They are much like bonds in that way. Mortgage REITs fare better than other real estate companies during a high-interest rate environment.
The fund was created on May 1, 2007, and tracks the FTSE Nareit All Mortgage Capped Index. It has an expense ratio of approximately 0.48%. The fund also offers an annual dividend payout of 10.18%, with its most recent payment being 56 cents per share, which was paid to investors on Oct. 2. The fund issuer is BlackRock Financial Management (NYSE:BLK), with a one-month average volume of 536,000. And they also have $580 million in assets under management.
This ETF has 32 different holdings and the top three include Annaly Capital Management (NYSE:NLY), based in New York, New York. It finances mortgages and other similar loan products and represents 16% of the fund. Starwood Property Trust (NYSE:STWD) provides commercial and residential loan servicing and represents 11% of the fund. Finally, AGNC Investment (NASDAQ:AGNC), located in Bethesda, Maryland, operates as a provider of primarily residential mortgage-backed securities. It composes 9% of the total fund.
Vanguard Real Estate Fund ETF (VNQ)
Source: Shutterstock
Vanguard Real Estate Fund ETF (NYSEARCA:VNQ) is the largest real estate investment fund based on assets under management. It tracks The MSCI US Investable Market Real Estate 25/50 Index. They have an expose ratio of 0.12% and were created on Sept. 23, 2004. This ETF is focused on a wide range of real estate investment companies. They have $28.1 billion in assets under management and have a single-month average volume of just over 6 million. They have a dividend yield of approximately 4.80% on an annual basis.
The fund carries 160 separate holdings and the top three for this ETF include Prologis (NYSE:PLD), an industrial real estate investment trust that owns and leases large-scale logistic facilities in nearly 20 countries. They make up 7% of the fund. Next is American Tower (NYSE:AMT), a company that invests in telecom infrastructure and comprises 6% of the fund. Lastly, Equinix (NASDAQ:EQIX) is a leading provider in data center real estate; it composes 5% of the total fund.
iShares Core U.S. REIT ETF (USRT)
Source: Shutterstock
Lastly, iShares Core REIT ETF (NYSEARCA:USRT) is a fund that tracks the FTSE Nareit Equity REITS Index. It’s among the REIT ETFs BlackRock Financial Management handles, created on May 1, 2007. The fund’s goal is to have diversified exposure to the real estate market and focus on long-term potential returns. Their expense ratio is approximately 0.08%, and they offer an annual dividend payout of 3.70%. It has a one-month average volume of 429,000 and $2 billion in assets under management.
This ETF has 135 holdings and the top three include the aforementioned Prologis and Equinox, and Welltower (NYSE:WELL), an REIT that specializes in the investment of health care infrastructure, which makes up 5% of the fund.
As of this writing, Noah Bolton did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Noah has about a year of freelance writing experience. He’s worked with Investopedia dealing with topics such as the stock market and financial news.
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The post 3 REIT ETFs to Buy for Massive Long-Term Gains appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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2023-11-21
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AMT
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Below is Validea's guru fundamental report for AMERICAN TOWER CORP (AMT). Of the 22 guru strategies we follow, AMT rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. This growth model looks for low book-to-market stocks that exhibit characteristics associated with sustained future growth.
AMERICAN TOWER CORP (AMT) is a large-cap growth stock in the Rental & Leasing industry. The rating using this strategy is 55% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
BOOK/MARKET RATIO: PASS
RETURN ON ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS VS. RETURN ON ASSETS: PASS
RETURN ON ASSETS VARIANCE: PASS
SALES VARIANCE: PASS
ADVERTISING TO ASSETS: FAIL
CAPITAL EXPENDITURES TO ASSETS: FAIL
RESEARCH AND DEVELOPMENT TO ASSETS: FAIL
Detailed Analysis of AMERICAN TOWER CORP
AMT Guru Analysis
AMT Fundamental Analysis
More Information on Partha Mohanram
Partha Mohanram Portfolio
About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Sometimes research that changes the investing world can come from the halls of academia. Partha Mohanram is a great example of this. While academic research has shown that value investing works over time, it has found the opposite for growth investing. Mohanram turned that research on its head by developing a growth model that produced significant market outperformance. His research paper "Separating Winners from Losers among Low Book-to-Market Stocks using Financial Statement Analysis" looked at the criteria that can be used to separate growth stocks that continue their upward trajectory from those that don't. Mohanram is currently the John H. Watson Chair in Value Investing at the University of Toronto and was previously an Associate Professor at the Columbia Business School.
Additional Research Links
Top NASDAQ 100 Stocks
Factor-Based ETF Portfolios
Harry Browne Permanent Portfolio
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High Shareholder Yield Stocks
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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2023-11-20
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AMT
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares U.S. Real Estate ETF (Symbol: IYR) where we have detected an approximate $110.3 million dollar inflow -- that's a 4.1% increase week over week in outstanding units (from 32,750,000 to 34,100,000). Among the largest underlying components of IYR, in trading today Prologis Inc (Symbol: PLD) is down about 0.1%, American Tower Corp (Symbol: AMT) is up about 0.4%, and Equinix Inc (Symbol: EQIX) is higher by about 0.4%. For a complete list of holdings, visit the IYR Holdings page » The chart below shows the one year price performance of IYR, versus its 200 day moving average:
Looking at the chart above, IYR's low point in its 52 week range is $72.88 per share, with $96.02 as the 52 week high point — that compares with a last trade of $81.76. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs had notable inflows »
Also see:
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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2023-11-20
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AMT
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Lots of people think that they'd love being a real estate investor, buying and renting out properties. It can seem like easy money, with all those rent checks rolling in. But you generally need to have a fair amount of money in order to buy property in the first place -- a down payment, at least. And there are downsides to being a property owner, too: You can't just sell half the building when you need money. You might lose money when the unit is empty between tenants. You'll still be on the hook for taxes, insurance, maintenance, and repairs, too.
Fortunately, there's a much easier way to invest in real estate: Via real estate investment trusts (REITs). You don't even have to find and invest in the perfect REIT, because you can invest in many via a REIT-focused exchange-traded fund (ETF). Here's a look at what REITs and ETFs are, along with a few exemplary ETFs to consider.
Image source: Getty Images.
What's a REIT?
A REIT is a company that invests in real estate. So, by investing in one, you can be a real estate investor -- without any headaches related to owning properties on your own. A REIT will typically own many, many properties, leasing them out (often with long-term contracts) and collecting rental payments.
REITs will typically focus on a particular segment of the real estate market -- such as apartments, medical properties, warehouses, retail outlets, storage facilities, industrial buildings, and so on. REITs trade like regular stocks, and by law, they're required to pay out at least 90% of their income to shareholders. Thus, many of them sport attractive dividend yields.
Sounds good, right?
What's an ETF?
You can definitely read up on REITs and select the most promising ones in which to invest your money. But that takes time, energy, and some stock evaluation skills. So consider this alternative: Invest in REITs via one or more ETFs.
An ETF is essentially a mutual fund-like investment that trades like a stock. As with stocks, you can buy or sell as little as a single share at a time. An ETF's value is based on the values of its holdings, and it will fluctuate throughout a trading day. An ETF will contain a range of securities, such as stocks and/or bonds. Many ETFs are broad-market index funds, tracking, for example, the S&P 500 index. Many others have narrower focuses, such as a particular region in the world, companies of a certain size, or companies within a certain industry -- such as real estate.
Solid REIT ETFs to consider
Below, for your consideration, are a few solid ETFs that are focused on REITs. There are many others out there, of course. Whether you give some thought to these or others, be sure to pay attention to their "expense ratio," which is essentially the annual fee.
You might also compare these funds' five-year average annual gain to that of the FTSE NAREIT All Equity REITs Index, a good benchmark index for the industry. Over the past five years, the index has averaged annual gains of 2.2%.
That's not an exciting return, but few industries will post terrific returns in every five-year period. The Vanguard ETF below, for example, averaged annual gains of 10.75% over the past 15 years. It's worth checking out the longer-term performance of any ETF of interest -- and not counting on any representative return to be very predictive of future returns.
ETF
EXPENSE RATIO
RECENT DIVIDEND YIELD
5-YEAR AVERAGE
ANNUAL GAIN
Invesco S&P 500 Equal Weight Real Estate ETF (RSPR)
0.40%
3.91%
3.87%
iShares Core US REIT ETF (USRT)
0.08%
3.69%
2.24%
Real Estate Select Sector SPDR (XLRE)
0.10%
3.95%
3.91%
Vanguard Real Estate ETF (VNQ)
0.12%
2.91%*
2.21%
Shares U.S. Real Estate ETF (IYR)
0.40%
3.51%
3.20%
JPMorgan Realty Income ETF (JPRE)
0.50%
3.63%
3.31%
Source: Morningstar.com.
*Vanguard has listed this recent adjusted effective yield instead of a more typical 30-day SEC yield.
As an example of what you'll find when you peek under an ETF's hood, know that the Vanguard Real Estate ETF encompasses more than 150 different holdings. Its top 10 make up 47% of its total assets, and its top three holdings are Prologis (focused on logistics properties such as warehouses, with a 7.5% weighting), American Tower (focused on communications properties, 5.55%), and Equinix (focused on digital infrastructure, 4.9%). Other REIT ETFs will be somewhat similar, typically with dozens or even hundreds of different holdings.
Remember, too, that each REIT will generally own gobs of properties. Here's how American Tower describes itself, for example: "Our global portfolio includes nearly 225,000 communications sites, including nearly 43,000 properties in the United States and Canada and nearly 182,000 properties internationally."
Think about your overall portfolio and about how much of your assets you want to have in real estate. You might spread that sum across a few different REIT ETFs -- and then let those underlying REITs do all the investing in properties and the collecting of rents, sharing most of their wealth with you.
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Selena Maranjian has positions in American Tower. The Motley Fool has positions in and recommends American Tower, Equinix, Prologis, and Vanguard Specialized Funds-Vanguard Real Estate ETF. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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2023-11-20
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AMT
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All of the three widely followed indexes closed out last week with gains. The tech-heavy Nasdaq Composite, the S&P 500 and the Dow Jones Industrial Average jumped 2.4%, 2.2% and 1.9%, respectively, marking three straight weeks of gains. For the S&P 500 and the Dow, it was their longest weekly gaining streak since July. For the Nasdaq, it marked the longest winning streak since June.
Thanks to the gradual decline in gasoline prices, the consumer price index numbers for October came in cooler than expected. This could convince the Fed that no further rate hikes are required. In recent weeks, investors are shrugging off hawkish comments coming in from Fed officials, believing that the economy may have reached the end of the rate-hike cycle. The consumer-side inflation numbers only fuel that sentiment further.
Treasury yields have also been coming down from the 16-year highs seen a few weeks ago, boosting investor morale. On Friday, the U.S 10-Year Treasury Note yielded its lowest in about two months.
Regardless of market conditions, we, here at Zacks, provide investors with unbiased guidance on how to beat the market.
As usual, Zacks Research guided investors over the past three months with its time-tested methodologies. Given the prevailing market uncertainty, you may want to look at our feats to prepare better for your next action.
Here are some of our key achievements:
eGain and Ferguson Surge Following Zacks Rank Upgrade
Shares of eGain Corporation EGAN have gained 13.9% (versus the S&P 500’s 1.3% increase) since it was upgraded to a Zacks Rank #1 (Strong Buy) on September 20.
Another stock, Ferguson plc FERG, which was upgraded to a Zacks Rank #2 (Buy) also on September 20, has returned 8.1% (versus the S&P 500’s 1.3% increase) since then.
Zacks Rank, our short-term rating system, has earnings estimate revisions at its core. Empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
A hypothetical portfolio of Zacks Rank #1 (Strong Buy) stocks returned +12.02% this year (through September 4th) vs. +18.2% for the S&P 500 index and +7.6% for the equal-weight S&P 500 index. The portfolio of Zacks Rank #1 stocks is an equal-weight portfolio, while the S&P 500 index is a market-cap-weighted index that has been notably distorted by the strong recent performance of mega-cap stocks.
We are not trying to cherry-pick here. But since this Zacks Model portfolio, consisting of Zacks Rank #1 stocks, is an equal-weight portfolio, the equal-weight S&P 500 index is the appropriate benchmark for comparison. Looked at this way, this portfolio has outperformed the index this year.
The Zacks Model Portfolio - consisting of Zacks Rank #1 stocks – has outperformed the S&P index by more than 13 percentage points since 1988 (Through September 4th, 2023, the Zacks # 1 Rank stocks has generated an annualized return of +24.17% since 1988 vs. +10.82% for the S&P 500 index).You can see the complete list of today’s Zacks Rank #1 stocks here >>>
Check eGain’s historical EPS and Sales here>>>
Check Ferguson’s historical EPS and Sales here>>>
Image Source: Zacks Investment Research
Zacks Recommendation Upgrades Installed Building Products and G-III Apparel Higher
Shares of Installed Building Products, Inc. IBP and G-III Apparel Group, Ltd. GIII have advanced 15.8% (versus the S&P 500’s 4.3% rise) and 11.8% (versus the S&P 500’s 1% rise) since their Zacks Recommendation was upgraded to Outperform on September 25 and September 19, respectively.
While the Zacks Rank is our short-term rating system that is most effective over the one- to three-month holding horizon, the Zacks Recommendation aims to predict performance over the next 6 to 12 months. However, just like the Zacks Rank, the foundation for the Zacks Recommendation is trends in earnings estimate revisions.
The Zacks Recommendation classifies stocks into three groups — Outperform, Neutral and Underperform. While these recommendations are determined quantitatively, our analysts have the flexibility to override them for the 1100+ stocks they closely follow based on their better judgment of factors such as valuation, industry conditions and management effectiveness than the quantitative model.
To access our research reports with Zacks Recommendations for the 1100+ stocks we cover, click here>>>
Zacks Focus List Stocks Shopify, Uber Shoot Up
Shares of Shopify Inc. SHOP, which belongs to the Zacks Focus List, have gained 23.2% over the past 12 weeks. The stock was added to the Focus List on September 6, 2022. Another Focus-List holding, Uber Technologies, Inc. UBER, which was added to the portfolio on August 16, 2019, has returned 21.8% over the past 12 weeks. The S&P 500 has advanced 3.2% over this period.
The 50-stock Zacks Focus List model portfolio returned +22.3% in 2023 (through July 31st) vs. +20.6% for the S&P 500 index and +10.5% for the equal-weight S&P 500 index. In 2022, the portfolio produced -15.2% vs. the S&P 500 index’s -17.96%.
Since 2004, the Focus List portfolio has produced an annualized return of +11.27% through July 31st, 2023. This compares to a +9.65% annualized return for the S&P 500 index in the same time period.
On a rolling one-, three- and five-year bases, the Zacks Focus List returned +21.76%, +16.33%, and +12.54% vs. +12.99%, +13.71% and +12.19% for the S&P 500 index, respectively.
Unlock all of our powerful research, tools and analysis, including the Focus List, Zacks #1 Rank List, Equity Research Reports, Zacks Earnings ESP Filter, Premium Screener and more, as part of Zacks Premium. Gain full access now >>
Zacks ECAP Stocks Fair Isaac and Intuit Make Significant Gains
Fair Isaac Corporation FICO, a component of our Earnings Certain Admiral Portfolio (ECAP), has jumped 23.1% over the past 12 weeks. Intuit Inc. INTU has followed Fair Isaac with 12.4% returns.
ECAP, which consists of 30 concentrated, ultra-defensive, long-term Buy-and-Hold stocks, has returned +6.67% in 2023 (through June 30) versus +16.90% for the S&P 500 Index. The portfolio returned -4.7% in 2022 versus the S&P 500 Index’s -17.96%.
With little to no turnover and annual rebalance periodicity, the ECAP seeks to minimize capital loss by holding shares of companies whose earnings streams exhibit a proven 20+ year track record of surviving recessionary periods with minimal impact on aggregate earnings growth relative to the overall S&P 500.
The ECAP and many other model portfolios are available as part of Zacks Advisor Tools, a cloud-based solution to access Zacks award-winning stock, mutual fund and ETF research. Click here to schedule a demo.
Zacks ECDP Stocks American Tower and Fastenal Outperform Peers
American Tower Corporation AMT, which is part of our Earnings Certain Dividend Portfolio (ECDP), has returned 11.6% over the past 12 weeks. Another ECDP stock, Fastenal Company FAST, has climbed 7.6% over the same time frame. Of course, the inclination of investors toward quality dividend stocks to secure an income stream amid heightened market volatility contributed to this performance.
Check American Tower’s dividend history here>>>
Check Fastenal’s dividend history here>>>
With an extremely low Beta and a history of minimum earnings variability over the last 20+ years, this 25-stock portfolio helps significantly mitigate risk.
ECDP has returned +0.18% in 2023 (through June 30) versus +16.90% for the S&P 500 Index. The portfolio returned -2.3% in 2022 versus -17.96% for the S&P 500 Index and -8.34% for the ProShares S&P 500 Dividend Aristocrats ETF NOBL.
Click here to access this portfolio on Zacks Advisor Tools.
Zacks Top 10 Stocks — Fabrinet Delivers Solid Returns
Fabrinet FN, from the Zacks Top 10 Stocks for 2023, has surged 33.5% year to date, which compares to a 19% gain for the S&P 500 Index.
The portfolio returned +16.16% through the end of July 2023 vs. +20.64% for the S&P 500 index and +10.73% for the equal-weighted version of the index. The portfolio returned -15.8% in 2022 vs. -18.1% for the S&P 500 index. Since 2012, the Top 10 portfolio has generated an annualized return of +22.78% vs. +13.65% for the S&P 500 index.
Since the start of 2012 through July 31, 2023, the Zacks Top 10 Stocks have produced a cumulative return of +977.47% vs. +340.35% cumulative return for the S&P 500 index.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s credited with a “watershed medical breakthrough” and is developing a bustling pipeline of other projects that could make a world of difference for patients suffering from diseases involving the liver, lungs, and blood. This is a timely investment that you can catch while it emerges from its bear market lows.
It could rival or surpass other recent Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
American Tower Corporation (AMT) : Free Stock Analysis Report
Fastenal Company (FAST) : Free Stock Analysis Report
Intuit Inc. (INTU) : Free Stock Analysis Report
G-III Apparel Group, LTD. (GIII) : Free Stock Analysis Report
Fair Isaac Corporation (FICO) : Free Stock Analysis Report
Fabrinet (FN) : Free Stock Analysis Report
eGain Corporation (EGAN) : Free Stock Analysis Report
Installed Building Products, Inc. (IBP) : Free Stock Analysis Report
Shopify Inc. (SHOP) : Free Stock Analysis Report
ProShares S&P 500 Dividend Aristocrats ETF (NOBL): ETF Research Reports
Uber Technologies, Inc. (UBER) : Free Stock Analysis Report
Ferguson plc (FERG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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2023-11-17
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AMT
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Below is Validea's guru fundamental report for AMERICAN TOWER CORP (AMT). Of the 22 guru strategies we follow, AMT rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. This growth model looks for low book-to-market stocks that exhibit characteristics associated with sustained future growth.
AMERICAN TOWER CORP (AMT) is a large-cap growth stock in the Rental & Leasing industry. The rating using this strategy is 55% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
BOOK/MARKET RATIO: PASS
RETURN ON ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS VS. RETURN ON ASSETS: PASS
RETURN ON ASSETS VARIANCE: PASS
SALES VARIANCE: PASS
ADVERTISING TO ASSETS: FAIL
CAPITAL EXPENDITURES TO ASSETS: FAIL
RESEARCH AND DEVELOPMENT TO ASSETS: FAIL
Detailed Analysis of AMERICAN TOWER CORP
AMT Guru Analysis
AMT Fundamental Analysis
More Information on Partha Mohanram
Partha Mohanram Portfolio
About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Sometimes research that changes the investing world can come from the halls of academia. Partha Mohanram is a great example of this. While academic research has shown that value investing works over time, it has found the opposite for growth investing. Mohanram turned that research on its head by developing a growth model that produced significant market outperformance. His research paper "Separating Winners from Losers among Low Book-to-Market Stocks using Financial Statement Analysis" looked at the criteria that can be used to separate growth stocks that continue their upward trajectory from those that don't. Mohanram is currently the John H. Watson Chair in Value Investing at the University of Toronto and was previously an Associate Professor at the Columbia Business School.
Additional Research Links
Top Large-Cap Growth Stocks
Factor-Based Stock Portfolios
Dividend Aristocrats 2023
High Insider Ownership Stocks
Top S&P 500 Stocks
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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2023-11-16
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AMT
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Investors in American Tower Corp (Symbol: AMT) saw new options begin trading today, for the July 2024 expiration. One of the key inputs that goes into the price an option buyer is willing to pay, is the time value, so with 246 days until expiration the newly trading contracts represent a potential opportunity for sellers of puts or calls to achieve a higher premium than would be available for the contracts with a closer expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AMT options chain for the new July 2024 contracts and identified one put and one call contract of particular interest.
The put contract at the $195.00 strike price has a current bid of $14.40. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $195.00, but will also collect the premium, putting the cost basis of the shares at $180.60 (before broker commissions). To an investor already interested in purchasing shares of AMT, that could represent an attractive alternative to paying $197.24/share today.
Because the $195.00 strike represents an approximate 1% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 7.38% return on the cash commitment, or 10.96% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for American Tower Corp, and highlighting in green where the $195.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $200.00 strike price has a current bid of $16.40. If an investor was to purchase shares of AMT stock at the current price level of $197.24/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $200.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 9.71% if the stock gets called away at the July 2024 expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if AMT shares really soar, which is why looking at the trailing twelve month trading history for American Tower Corp, as well as studying the business fundamentals becomes important. Below is a chart showing AMT's trailing twelve month trading history, with the $200.00 strike highlighted in red:
Considering the fact that the $200.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 8.31% boost of extra return to the investor, or 12.34% annualized, which we refer to as the YieldBoost.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 251 trading day closing values as well as today's price of $197.24) to be 27%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of Stocks Analysts Like »
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Institutional Holders of FDIS
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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2023-11-15
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AMT
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American Tower Corp (Symbol: AMT) has been named a Top Socially Responsible Dividend Stock by Dividend Channel, signifying a stock with above-average ''DividendRank'' statistics including a strong 3.3% yield, as well as being recognized by prominent asset managers as being a socially responsible investment, through analysis of social and environmental criteria. Environmental criteria include considerations like the environmental impact of the company's products and services, as well as the company's efficiency in terms of its use of energy and resources. Social criteria include elements such as human rights, child labor, corporate diversity, and the company's impact on society — for instance, taken into consideration would be business activities tied to weapons, gambling, tobacco, and alcohol.
According to the ETF Finder at ETF Channel, American Tower Corp is a member of both the iShares MSCI USA ESG Select ETF (SUSA), making up 0.46% of the underlying holdings of the fund, as well as the iShares MSCI KLD 400 Social Index Fund ETF (DSI), where AMT makes up 0.43% of the underlying holdings of the fund.
The annualized dividend paid by American Tower Corp is $6.48/share, currently paid in quarterly installments, and its most recent dividend ex-date was on 10/10/2023. Below is a long-term dividend history chart for AMT, which the DividendRank report stressed as being of key importance. Indeed, studying a company's past dividend history can be of good help in judging whether the most recent dividend is likely to continue.
AMT operates in the REITs sector, among companies like Prologis Inc (PLD), and Welltower Inc (WELL).
Top 25 Socially Responsible Dividend Stocks — Income To Feel Good About »
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Institutional Holders of DXGE
Funds Holding UMBF
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-11-14
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AMT
|
"It's the economy, stupid," is a maxim of long-standing in the political world. It's also front of mind for many investors in real estate investment trusts (REITs), as evidenced by the dramatic upswings of many stocks in the sector on Tuesday. There was some highly encouraging news about inflation, and the market reacted accordingly and strongly.
Many REITs booked notable gains on the day, no matter what niche or niches they specialize in. Realty Income (NYSE: O) closed nearly 5% higher in price, while American Tower (NYSE: AMT) and Sun Communities (NYSE: SUI) both rose by nearly 6%. Stag Industrial (NYSE: STAG) and W.P. Carey (NYSE: WPC) moved higher by 4.6% and 3.3%, respectively.
Inflation came in lower than expected
There was little consequential news from any of those five REITs (or any prominent company in the sector, come to think of it). Rather, the bullishness was due to the latest inflation data from the federal government's Labor Department.
It revealed that consumer prices were more or less flat in October month over month, while the year-over-year rise from the previous October, 3.2%, was lower than the 3.7% of September.
Drilling down a bit, core inflation (which strips out relatively volatile food and energy prices) moved up by 2.8% year over year. That was well down from the 5.1% we experienced in the first five months of this year.
The October figures were lower than the consensus estimates from economists.
All of this increases the chances that the Federal Reserve will not raise interest rates, at least in the proximate future. It has been an aggressive raiser over the past few years, spurred by a desire to dampen the inflation that has plagued the U.S. economy since the pandemic.
A pause in interest rate increases (or even, eventually, perhaps a reversal) is a clear benefit to any business in or adjacent to real estate. Investing in property is expensive, which is why real estate in general and REITs in particular rely so heavily on debt financing.
With rates turning steady ahead -- or, again, even potentially declining -- they won't have to pay more for the credit they need to build, acquire, or maintain properties.
A broad rally throughout the REIT sector
That's why Tuesday's REIT rally was indiscriminate, benefiting operators that concentrate on retail properties (Realty Income), warehouses (Stag Industrial), communications infrastructure (American Tower), or basically any other niche in the sector.
Is the surge likely to continue? I would imagine not, as news items tend to provide very short-term pops to stock prices. Yet the inflation figures made for very positive and encouraging news that brightens the outlook for nearly every title in the REIT sector. Now is a good time to be invested there.
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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends American Tower, Realty Income, Stag Industrial, and Sun Communities. The Motley Fool recommends W. P. Carey. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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2023-11-13
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AMT
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American Tower Corporation AMT, through its Africa operations (ATC Africa), is set to make significant strides in improving wireless connectivity in Nigeria via an agreement with MTN Nigeria. The recently announced collaboration highlights AMT's commitment to sustainability and responsible business practices while expanding its presence in the African market.
Under the terms of this agreement, starting in the second half of 2024, ATC Africa is set to facilitate new tenancies for MTN Nigeria over a multi-year period. Leveraging its extensive portfolio of more than 8,000 sites in Nigeria, a considerable portion of which already integrates green energy solutions, ATC Africa is poised to play a pivotal role in meeting MTN Nigeria's evolving site requirements. Additionally, the agreement involves the deployment of new sites adhering to ATC Africa's green site specifications, reinforcing a commitment to sustainable business practices.
According to Marek Busfy, the senior vice president and CEO of ATC Africa, “We believe this agreement, which secures incremental lease-up on our existing portfolio and a strong development pipeline, clearly demonstrates the differentiated value ATC Africa can provide its customers through our quality of assets, leading build-to-suit capabilities, and best-in-class Power-as-a-Service and green site offerings."
AMT continues focusing on macro-tower investment opportunities and gaining scale in attractive global markets. It has built more than 45,000 international sites since it began expanding internationally. Around 8,000 of these sites have been built in Africa as carriers continue to invest in their network coverage and densification needs. Further, in the nine months ended Sep 30, 2023, it purchased 69 communications sites and other communications infrastructure assets in the United States, Canada, France, Poland and Spain for $65.7 million.
Moreover, in 2022, AMT acquired and constructed roughly 7,405 communications sites globally. Its 2021 acquisition of Telxius’ European and Latin American tower divisions, consisting of around 31,000 communications sites in Argentina, Brazil, Chile, Germany, Peru and Spain, has offered a significant scale in these attractive markets, diversifying its footprint with the strong, primarily tier-1, multinational tenant base.
The advancement in mobile technology, such as 4G and 5G, and the proliferation of bandwidth-intensive applications propel growth in mobile data usage globally. Moreover, the advent of next-generation technologies, including edge computing functionality, autonomous vehicle networks and the Internet of Things, and the rampant usage of network-intensive applications for video conferencing and cloud services and hybrid-working scenarios have rapidly increased wireless connectivity usage.
Amid this, wireless service providers and carriers have been deploying additional equipment for existing networks to enhance network coverage and capacity. Given its portfolio of nearly 225,000 communication sites worldwide and the unmatched geographic diversification of its sites, American Tower is strategically positioned to capture incremental demand from global 4G and 5G deployment efforts, growing wireless penetration and spectrum auctions.
In the third quarter of 2023, the company recorded healthy year-over-year organic tenant billings growth of 6.3% and total tenant billings growth of 7.3%. In the nine months ended Sep 30, 2023, revenues from the property segment and adjusted EBITDA increased by 5.2% and 7.9%, respectively, on a year-over-year basis. However, customer concentration and high interest rates pose key concerns for AMT.
Shares of this Zacks Rank #3 (Hold) company have risen 8.6% in the past month against the industry’s decline of 1.3%.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks from the REIT sector are Welltower WELL, Iron Mountain Incorporated IRM and Boston Properties BXP, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Welltower’s current-year funds from operations (FFO) per share has moved marginally northward over the past week to $3.58.
The Zacks Consensus Estimate for Iron Mountain’s 2023 FFO per share has moved marginally upward in the past three months to $3.97.
The Zacks Consensus Estimate for Boston Properties’ ongoing year’s FFO per share has been raised marginally over the past two months to $7.30.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
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American Tower Corporation (AMT) : Free Stock Analysis Report
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To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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2023-11-13
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AMT
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Below is Validea's guru fundamental report for AMERICAN TOWER CORP (AMT). Of the 22 guru strategies we follow, AMT rates highest using our Shareholder Yield Investor model based on the published strategy of Meb Faber. This strategy looks for companies returning cash to shareholders via dividends, buybacks and debt paydown.
AMERICAN TOWER CORP (AMT) is a large-cap growth stock in the Rental & Leasing industry. The rating using this strategy is 55% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
UNIVERSE: PASS
NET PAYOUT YIELD: FAIL
QUALITY AND DEBT: FAIL
VALUATION: FAIL
RELATIVE STRENGTH: PASS
SHAREHOLDER YIELD: FAIL
Detailed Analysis of AMERICAN TOWER CORP
AMT Guru Analysis
AMT Fundamental Analysis
More Information on Meb Faber
Meb Faber Portfolio
About Meb Faber: Meb Faber is the founder of Cambria Investments. His research has covered a wide spectrum of the investment world, including topics like shareholder yield, trend following, global asset allocation and home country bias. His shareholder yield strategy, which is based on his book "Shareholder Yield" and forms the basis for an ETF of the same name, looks for companies that are focused on creating value for shareholders by returning cash to them in the form of dividends, share buybacks and debt paydown. Meb is also the author of 4 other books and numerous white papers on investing related topics.
Additional Research Links
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Dividend Aristocrats 2023
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About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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2023-11-10
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AMT
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American Tower Corporation’s AMT extensive and geographically diversified communication real estate portfolio positions it well to ride the growth curve amid rising capital spending by wireless carriers on the incremental demand from global 4G and 5G deployment efforts.
Its expansionary efforts and disciplined capital-allocation strategy augur well for long-term growth. However, customer concentration and high interest rates pose key concerns for the company.
What’s Aiding It?
With the advancement in mobile technology, such as 4G and 5G networks and the proliferation of bandwidth-intensive applications, mobile data usage has increased significantly globally. The excessive use of network-intensive applications for video conferencing, cloud services and hybrid-working scenarios is likely to fuel the rise.
This has led to greater capital spending by wireless carriers on the back of incremental demand from global 4G and 5G deployment efforts, growing wireless penetration and spectrum auctions, driving demand for AMT’s wireless communication infrastructure. This upbeat trend is likely to continue in the upcoming period, boosting demand for the company’s assets and driving healthy leasing activity.
American Tower has a solid track record of delivering healthy performance due to the robust demand for its global macro-tower-oriented asset base. It has witnessed strong growth in key financial metrics while continuing platform expansion.
In the third quarter of 2023, the company recorded healthy year-over-year organic tenant billings growth of 6.3% and total tenant billings growth of 7.3%. In the nine months ended Sep 30, 2023, revenues from the property segment and adjusted EBITDA increased by 5.2% and 7.9%, respectively, on a year-over-year basis.
Between 2012 and 2022, American Tower’s revenues from the property segment and adjusted EBITDA grew at CAGRs of 14.1% and 13.4%, respectively. Amid secular growth trends in the wireless industry, healthy performance is expected to continue in 2023, with management projecting property revenues and adjusted EBITDA growth of 4.5% and 6.1%, respectively, at the midpoint.
To capitalize on the secular trends of the industry, AMT is consistently focusing on macro-tower investment opportunities and expansionary efforts across global markets. It has built more than 45,000 international sites since it began expanding internationally. Around 8,000 of these sites have been built in Africa as carriers continue to invest in their network coverage and densification needs. In the nine months ended Sep 30, 2023, it purchased 69 communications sites, as well as other communications infrastructure assets, in the United States, Canada, France, Poland and Spain for $65.7 million.
Apart from having a robust operating platform, American Tower has ample liquidity to support its debt servicing. Its consistent adjusted EBITDA margins and revenue growth, as well as its favorable return on invested capital, indicate strength in its underlying core business and support its ability to manage its near-term obligations.
The company's net leverage ratio for the third quarter of 2023 was 5.0. As of Sep 30, 2023, the company had $9.7 billion in total liquidity. In addition, with a weighted average remaining debt term of 6.1 years, it has decent financial flexibility.
American Tower has a disciplined capital allocation strategy and remains committed to increasing shareholder value through regular dividend hikes. In September 2023, it announced a 3.2% hike in its quarterly dividend on the company’s common stock to $1.62 per share from $1.57 paid out earlier. The company has consistently increased its quarterly dividends since 2012 and its average annual dividend per share has grown more than 20% since then.
In the last five years, American Tower has increased its dividend 19 times and the annualized dividend growth rate for this period is 15.10%. This is attractive to income investors and represents a steady income stream. Check American Tower’s dividend history here.
What’s Hurting It?
Customer concentration is high for American Tower, with the company’s top three customers in terms of property revenues for third-quarter 2023 being T-Mobile (17%), AT&T (13%) and Verizon Wireless (12%). The loss of any of these customers, consolidation among them or reduction in network spending leads to a material impact on the company’s top line.
The elevated churn is a concern in emerging markets where the company operates. The merger between T-Mobile and Sprint, which closed in April 2020, resulted in tower site overlap for American Tower.
During the nine months ended Sep 30, 2023, the churn was roughly 3% of its tenant billings, mainly driven by the churn in its U.S. & Canada property segment. Given the contractual lease cancellations and non-renewals by T-Mobile, including legacy Sprint Corporation leases, management expects the churn rate in its U.S. & Canada property segment to remain elevated for several years through 2025.
A high interest rate environment is a concern for American Tower. Essentially, the elevated rates imply a higher borrowing cost for the company, which will affect its ability to purchase or develop real estate. The company has a substantial debt burden and its total consolidated debt as of Sep 30, 2023, was approximately $38.6 billion. Moreover, with high interest rates in place, the dividend payout might seem less attractive than the yields on fixed-income and money market accounts.
Shares of this Zacks Rank #3 (Hold) company have gained 9.8% in the past month against the industry’s decline of 0.9%.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks from the REIT sector are Welltower WELL, Iron Mountain Incorporated IRM and Boston Properties BXP, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Welltower’s current-year funds from operations (FFO) per share has moved marginally northward over the past month to $3.57.
The Zacks Consensus Estimate for Iron Mountain’s 2023 FFO per share has moved marginally upward in the past three months to $3.97.
The Zacks Consensus Estimate for Boston Properties’ ongoing year’s FFO per share has been raised marginally over the past two months to $7.30.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
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It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
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American Tower Corporation (AMT) : Free Stock Analysis Report
Iron Mountain Incorporated (IRM) : Free Stock Analysis Report
Boston Properties, Inc. (BXP) : Free Stock Analysis Report
Welltower Inc. (WELL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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2023-11-10
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AMT
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Russell Top 200 Growth ETF (Symbol: IWY) where we have detected an approximate $426.8 million dollar inflow -- that's a 5.8% increase week over week in outstanding units (from 46,000,000 to 48,650,000). Among the largest underlying components of IWY, in trading today Uber Technologies Inc (Symbol: UBER) is up about 2.8%, American Tower Corp (Symbol: AMT) is down about 0.8%, and Lam Research Corp (Symbol: LRCX) is higher by about 2.2%. For a complete list of holdings, visit the IWY Holdings page » The chart below shows the one year price performance of IWY, versus its 200 day moving average:
Looking at the chart above, IWY's low point in its 52 week range is $117.31 per share, with $165.41 as the 52 week high point — that compares with a last trade of $161.70. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs had notable inflows »
Also see:
AMWD Price Target
Top Ten Hedge Funds Holding FCFP
SWBI Dividend History
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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2023-11-06
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AMT
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
5G stocks aren’t just riding the wave of a technology trend, they’re at the helm of a revolution in the communications sphere. Think of 5G as the transformative step from the slide rule to the personal computer, a robust paradigm shift. With speeds almost 100 times faster than 4G and a tenfold increase in connectivity potential, 5G is redefining the tech sphere with aplomb. It slashes latency, a critical factor for seamless data transfer, by 90%, ushering in a powerful new era of innovation and efficiency.
That leap in capability paves the way for advancements across various sectors from mobile communications and automotive tech to the Internet of Things. Moreover, with Markets and Markets projecting a leap in 5G-generated annual sales to $331.1 billion by 2027, the trajectory for 5G stocks remains crystal clear.
Qualcomm (QCOM)
Source: Akshdeep Kaur Raked / Shutterstock.com
In the competitive semiconductor space, Qualcomm (NASDAQ:QCOM) emerges as a key player, especially in the burgeoning 5G realm. Its powerful innovations serve as a critical element in the deployment of advanced 5G networks, typically described as the framework underpinning the seamless operation of wireless internet.
Despite the headwinds in the global tech space, the company’s fourth-quarter earnings per share of $2.02 surpassed the street’s forecast by 11 cents, a testament to its resilient business model. Interestingly, this comes at a time when revenues dipped 24% year-over-year to $8.67 billion yet still edged past analyst estimates by roughly $146 million.
Moreover, the automotive sector provided a silver lining with a commendable 15% year-on-year revenue hike to $535 million. Additionally, with a forward dividend yield of 2.67% and a remarkable 21-year streak of dividend growth, Qualcomm demonstrates an attractive income opportunity. Furthermore, trading at a mere 3.29 times forward sales, Qualcomm’s stock presents a discount relative to historical multiples.
AT&T (T)
Source: ©iStock.com/toxaww
AT&T (NYSE:T) is a true titan in the telecom industry, which continues to make waves with its robust 5G network. The company has been steadfast in expanding its infrastructure, a strategic move that effectively places it on the path of the 5G adoption curve, set to benefit from the burgeoning demand for high-speed, reliable wireless service. Consequently, AT&T’s stock witnessed a 10% uptick in value since its third-quarter earnings announcement.
The Dallas-based giant surpassed EPS expectations, outperforming estimates by a couple of cents to 64 cents per share. Also, it nudged its revenue up by 1% year-over-year to $30.4 billion, slightly ahead of the $30.2 billion anticipated by analysts. Moreover, AT&T upgraded its free cash flow forecast to $16.5 billion, up from an earlier estimate of $16 billion. Likewise, the company also projected a healthy 7% growth in broadband sales. Additionally, for those with an eye on sturdy returns, AT&T’s impressive dividend yield stands at 7%, marking 27 years of unwavering payouts.
American Tower (AMT)
Source: Pavel Kapysh / Shutterstock.com
As 5G technology fuels a global connectivity revolution, American Tower (NYSE:AMT), a juggernaut among global Real Estate Investment Trusts (REITs), stands firm with its extensive network of cell towers. Despite a double-digit drop in share price this year, AMT is strategically positioned to leverage the predicted $333.01 billion surge in the REIT market over the next five years.
Beyond its financials, American Tower’s portfolio of over 225,000 communication sites accentuates its formidable global presence. The third quarter showcased the company’s robust operational performance, exceeding forecasts and raising its average-funds-from-operations per share guidance slightly above analyst expectations. This upward adjustment reflects a steady 0.3% year-on-year growth. Further solidifying investor confidence, American Tower also improved its full-year adjusted EBITDA outlook, forecasting a healthy 5.2% yearly bump. For dividend enthusiasts, AMT’s attractive 3.5% yield, along with over a decade of consistent payout expansion, presents a thrilling case for those banking on the 5G-driven future.
On the date of publication, Muslim Farooque did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.
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The post 5G Takeover: The 3 Tech Titans Leading the Charge in 2024 appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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