Is American Tower Stock a Buy?
Given its nearly 40% price decline since mid-2021, one might think that American Tower (NYSE: AMT) is dealing with a painful business downturn. While it wouldn't be fair to say the real estate investment trust (REIT) is hitting on all cylinders, it isn't exactly struggling. If you are looking for a long-term dividend grower, American Tower could be an interesting choice today, given its historically high 3.4% yield.
Cell phones and mobile computing are both big deals, and on a global scale. But Wall Street has a tendency to get too enamored of investment stories, and that's probably the reason for the particularly steep price decline at American Tower. An ill-timed expansion into data centers has hurt sentiment, as well. Adjusted funds from operations (FFO) were down 0.4% year over year in the first quarter. And the full-year target is for a roughly 1% drop, year over year, in 2023. But neither of those numbers seem to be enough to justify a 40% share-price decline. This looks more like a story stock in which investors have lost interest.
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Source Fool.com
