American Tower (AMT) – Hot Stock Pick

American Tower (AMT) operates wireless communications towers, broadcast communications towers and distributed antenna system networks; the company is involved in with 20,000 towers in the U.S. and 7,000 towers in Mexico, Brazil and India. Technically, the stock has broken out from a three-month, cup-and-handle base and is now within range to make a 10-year.

Its portfolio also includes approximately 200 in-building DAS networks that it operate in malls, casinos and other in-building applications in the United States and Mexico. The company operates in two business segments: rental and management, and network development services.

AMT’s 12-month performance chart shows the stock appreciating 58% versus a 24% gain for the S&P 500 index. So, although AMT has a beta of just 0.83 it has easily outperformed the S&P recently. The stock’s long-term chart shows the stock soaring to a peak of 55.50 back in 2000. The stock then fell sharply during the bear market of 2001 and 2002. I

In previous years (2008 and 2009), it held up fairly well. Now the stock is on the move and trending higher again.  

American Tower (AMT) stock price chart shows the stock rallying strongly in recent weeks from around 38 to 46. The stock has generated a lot of upside momentum.

The stock’s momentum indicator is strongly bullish. Most impressive is that the accumulation – distribution line is trending higher. It did not give much ground when the stock was heading lower in April and May. That shows that the selling was not that strong. Thus, the strong recent rebound.

This year, analysts forecast AMT’s earnings will surge 48% to 87 cents a share from 59 cents a year ago. The stock sells with a price-earnings ratio of 51. That is high. So, one must be watchful of the stock. I would get a piece of AMT now as it doesn’t look like this momentum is slowing anytime soon. More on American Tower Stock News.

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