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 (AMT 0.11%) 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 |
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.