Why American Tower Is Ready to Rebound

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, wireless communication tower operator American Tower (NYSE: AMT  ) has earned a respected four-star ranking.

With that in mind, let's take a closer look at American Tower and see what CAPS investors are saying about the stock right now.

American Tower facts

Headquarters (founded)

Boston (1995)

Market Cap

$29.5 billion

Industry

Diversified REIT

Trailing-12-Month Revenue

$3.0 billion

Management

Chairman/CEO James Taiclet, Jr.

CFO Thomas Bartlett

Return on Equity (average, past 3 years)

13.2%

Cash/Debt

$441.7 million / $8.9 billion

Dividend Yield

1.5%

Competitors

Crown Castle International

SBA Communications

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 93% of the 1,143 members who have rated American Tower believe the stock will outperform the S&P 500 going forward.

Just last month, fellow Fool Simon Erickson (TMFInnovator) tapped American Tower as a particularly tempting bargain opportunity:

- A short term miss on Wall Street expectations due to debt refinancing and currency effects giving us an opportunity to buy this long-term outperformer.
-AMT is showing strong growth. Their core tower management business is growing revenues at 20% annually; 33% internationally. 4G investments are being made by all carriers and require new towers from AMT.
-There is definitely plenty of demand for their business. Mobile traffic is expected to compound at a 66% annual growth rate (!!) between now and 2017, according to Cisco.
-US business is organized as a REIT, which is great for continued dividend payouts/increases. As international subsidiaries need less capital for expansion, they likely too will convert to REIT status, effectively turning this growth business into a cash cow.

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, American Tower may not be your top choice.

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