American Tower Corp (AMT) — This real estate investment trust (REIT) is the largest independent owner of wireless communications and broadcast towers in North America.
In late April, S&P Capital IQ Equity Research raised its opinion of AMT stock to “Buy” from “Hold,” saying growth prospects look good, especially as networks are upgraded to 4G and LTE, and that the company should benefit from increased demand from U.S. wireless carriers. Capital IQ also upped its 12-month price target for AMT stock by $23 to $120, as well as its estimates for operating EPS.
Analysts expect double-digit revenue growth to continue, with the consensus projecting a 20%-plus increase this year and a 10.5% increase next year. Earnings are expected to grow 11% in 2016 to $5.63 per share and another 13% to $6.36 per share in 2017.
Turning to the chart, AMT stock is in a bull market. After hitting a new all-time high in November 2014 at $106.31, shares entered a long period of consolidation. They fell to a low of $83.07 on Feb. 11, down 22% from their highs, bottoming along with the broader market.
Rallying from this bottom, AMT stock exceeded its previous peak, running to a new all-time high of $107.24 last week. Strong accumulation accompanied the move, and support now rests at $102 with resistance at $107.
Buy AMT stock at $105 for a quick break through resistance and a run to $112. If my target is hit, traders stand to book a profit of nearly 7%.
Investors should also consider buying this unique REIT with exposure to the technology sector for the chance at greater capital gains and steady income. The company currently pays an annual dividend of $2.04 per share, for a current forward yield of 1.9%, and has a history of dividend increases.
