1. American Tower Corporation (NYSE:AMT)
Number of Hedge Fund Holders: 63
5 Year Net Income Growth: 11.10%
American Tower Corporation (NYSE:AMT) provides infrastructure for modern digital communications. The firm is an independent owner, operator, and developer of multi-tenant communications real estate. Other than leasing space on its communications sites to tenants, it offers customized services and solutions including site acquisition, zoning and permitting, and structural analysis.
American Tower Corporation (NYSE:AMT) remains uniquely positioned as one of the largest publicly held global real estate investment trusts. The firm has the kind of portfolio that has resulted in a footprint across diverse geographies. This portfolio is well-established and comprises 224,000 communications sites, including almost 43,000 properties in the United States and Canada and over 181,000 properties internationally. The ongoing exponential growth in mobile data consumption has driven performance in the United States.
2024 has been promising for American Tower Corporation. Highlights from the firm’s recent second quarter include over 5% Organic Tenant Billings Growth in its US & Canada segment, positive collection trends in India, and the second-highest quarter of signed new business achieved by CoreSite. The strong performance led to a 13.5% attributable AFFO growth in the quarter.
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. The firm recently closed the sale of its operations in India to Data Infrastructure Trust, an Infrastructure Investment Trust sponsored by an affiliate of Brookfield Asset Management.
The established market position combined with the strong underlying demand for its communication asset portfolio and a clear trajectory for future growth makes American Tower Corporation (NYSE:AMT) an attractive real estate stock. As of Q2, the stock is held by 63 hedge funds.
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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