Despite its Down Year, This Top Growth Stock Has Towering Growth Ahead
A myriad of headwinds has hampered American Tower (NYSE: AMT) this year. As a result, the infrastructure-focused real estate investment trust (REIT) is only on track to grow its adjusted funds from operations (FFO) by 0.3% per share. That's a dramatic deceleration for a company that had been growing at a double-digit annual pace over the past decade. It has put a lot of downward pressure on the stock, which has lost nearly 20% of its value from its peak.
However, while a few things are currently holding the company back, those headwinds are beginning to fade. Meanwhile, 5G will provide a robust growth tailwind in the coming years. That drives the company's view that it will grow its tower business at a healthy pace.
"The fundamental factor that drives demand for our global tower portfolio, growth in mobile data consumption, continues unabated," stated American Tower CEO Tom Bartlett on the company's third-quarter conference call. He pointed out that "mobile network data traffic has almost doubled over the last two years alone to a staggering 126 exabytes per month."
Source Fool.com
