1. American Tower Corporation (NYSE:AMT)
Number of Hedge Fund Holders: 73
American Tower Corporation (NYSE:AMT) is one of the largest global real estate investment trusts founded in 1995 as an American Radio subsidiary. The firm offers services and solutions to deploy and support wireless networks in 24 countries across six continents. It has a portfolio of independently owned US and international tower real estate and a network of data centers in the US. AMT’s customers include mobile network operators, multinational telecommunications companies, media and broadband providers, and government agencies.
The ongoing exponential growth in mobile data consumption has driven AMT’s performance in the US. The company’s performance is backed up by the strong underlying demand for its portfolio of communications assets. Its synergy revolves around having that global expertise and experience enabling it to navigate operational risks in new markets while simultaneously creating opportunities. With a resilient demand and strength of underlying fundamentals across the portfolio, AMT is well positioned.
The company is pursuing long-term growth by managing its diverse markets. AMT has planned to reduce its exposure to emerging markets which are more vulnerable to the macro environment as the firm continues to focus on incremental investments in developed economies. In September, AMT closed the sale of operations in India to Data Infrastructure Trust, an Infrastructure Investment Trust sponsored by an affiliate of Brookfield Asset Management.
For the third quarter of 2024, the firm’s total revenue grew by less than 0.1% to $2,522 million while net income and adjusted EBITDA declined. As emphasized by CEO Steven Vondran, the carrier rollouts of 5G coverage tend to support robust activity levels in the United States and Europe while demand for AMT’s global portfolio of communications infrastructure assets is evident. Hence, American Tower Corporation (NYSE:AMT) is a leading independent owner, operator, and developer of multi-tenant communications real estate, having a solid portfolio of over 148,000 communications sites and a highly interconnected footprint of US data center facilities.
While we acknowledge the potential of AMT as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a deeply undervalued AI stock that is more promising than AMT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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