But it’s worth thinking about the likely impacts of the rise of AI on essential services companies.Ĭonsider data center operators. The catalyst: An outbreak of interest in stocks perceived as benefitting from adoption of artificial intelligence. See also: BGRFX: A Growth Fund Benefitting from Persistent Tech Strength But thanks to a buying wave washing over a handful of now very expensive big technology stocks, the index and related ETFs are up 12.8 percent so far in 2023. The S&P 500 is still a little more than 10 percent below its January 2022 high water mark. Consider the case of MDU Resources ( MDU), writes Roger Conrad, editor of Conrad’s Utility Investor. Yet at least so far, there’s been little attention paid to the immense volumes of energy and communications bandwidth to support ubiquitous AI chatbots needed to make that dream a reality. For comparison, its industry has an average Forward P/E of 11.71, which means American Tower is trading at a premium to the group.The bulls envision a world where AI is used to augment productivity to transform pretty much every industry. In terms of valuation, American Tower is currently trading at a Forward P/E ratio of 19.78. American Tower is currently sporting a Zacks Rank of #3 (Hold). Over the past month, the Zacks Consensus EPS estimate has moved 0.16% lower. It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). Our system takes these estimate changes into account and delivers a clear, actionable rating model. We developed the Zacks Rank to capitalize on this phenomenon. Research indicates that these estimate revisions are directly correlated with near-term share price momentum. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook. These recent revisions tend to reflect the evolving nature of short-term business trends. Investors might also notice recent changes to analyst estimates for American Tower.
These results would represent year-over-year changes of -1.02% and +2.75%, respectively. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.73 billion, up 2.23% from the year-ago period.ĪMT's full-year Zacks Consensus Estimates are calling for earnings of $9.66 per share and revenue of $11.01 billion. The company is expected to report EPS of $2.36, down 8.88% from the prior-year quarter.
Investors will be hoping for strength from American Tower as it approaches its next earnings release. This has lagged the Finance sector's gain of 2.29% and the S&P 500's gain of 4.14% in that time. Prior to today's trading, shares of the wireless communications infrastructure company had lost 2.85% over the past month. At the same time, the Dow lost 0.59%, and the tech-heavy Nasdaq lost 1.54%. This change lagged the S&P 500's 0.2% loss on the day. American Tower (AMT) closed the most recent trading day at $188.64, moving -1.31% from the previous trading session.
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