UBS’ Best Stocks In The AI, Growth & Low Rates Era: Top 29 US Stocks

16. American Tower Corporation (NYSE:AMT)

Number of Hedge Fund Investors In Q2 2024: 63

UBS’ Sector Rating: Neutral

Sector: Real Estate

American Tower Corporation (NYSE:AMT) is a specialty real estate investment trust that caters to the needs of the technology and communications industries. This has proven crucial for its hypothesis in a high-rate environment that has generally spelled trouble for the real estate industry as the stock is up 23.7% over the past twelve months. However, while it has exposure to data centers, American Tower Corporation’s (NYSE:AMT) global position has also proven to be somewhat of a headache as the firm has failed to ensure robust performance worldwide. This also led it to divest its Indian operations earlier this year. American Tower Corporation (NYSE:AMT) benefits from the fact that it signs contracts that range between five to ten years, which enable it to lock in customers during volatile periods and also provide investors insight into future cash flows. Additionally, along with data centers, a key source of revenue for the firm is its leases with telecommunications firms. This was evident following American Tower Corporation’s (NYSE:AMT) third-quarter earnings which saw the stock tank by 4% as the firm’s $2.52 billion revenue missed analyst revenue estimates of $2.76 billion. The firm’s funds from operations (FFO) of $2.52 per share also missed estimates of $2.58 with the high-end full-year FFO guidance of $10.03 also missing estimates of $10.59.

ClearBridge Investments mentioned American Tower Corporation (NYSE:AMT) in its Q2 2024 investor letter. Here is what the fund said:

“American Tower, which we also added this quarter, is a great example of a new position that has a less expansive upside, but immensely compliments our overall portfolio positioning and utility. The company, which boasts incredible fundamental stability and built-in growth and inflation protection via its customer contracts, currently trades near decade lows across a variety of valuation measures.”