Top 5 Data Center Stocks to Buy Now

4. American Tower Corp (NYSE:AMT)

No of HFs: 62

Total Value of HF Holdings: $4.6 Billion

American Tower Corp is a global manufacturer of wireless communications infrastructure and next-generation wireless technologies. In the Fortune 500, the company was ranked 410^th. During the third quarter of 2020, the company reported a revenue of $2.01 billion, a 3% increase year-over-year.

In an article, we mentioned RicerPark Advisors, LLC’s comments on AMT,

“American Tower: AMT shares were a top detractor on mixed second quarter results and management’s lowered full year revenue and EBITDA guidance (the company did, however, increase its AFFO/share guidance). The company guided to slower-than-expected U.S. property revenue growth due to a push-out of T-Mobile/Sprint capital spending. We believe U.S. activity should reaccelerate in the second half of this year, driven by T-Mobile/Sprint restarting capital spending, and into 2021, with Dish starting to ramp.”

In a separate article, Qualivian Investment Partners also mentioned had a few comments on the stock

“American Tower: AMT was the only slightly negative contributor to the fund’s performance in the third quarter. However, when it reported Q3 results in October, AMT bested revenue, EBITDA, and AFFO estimates in the quarter, while seeing an improving revenue growth trajectory in its international business, which has been one of the key tenets of our investment thesis in AMT. As key international markets continue to mature and densify their networks, the company should see accelerating revenue, EBITDA and operating cash growth from its portfolio of international towers. The company offered limited color on 2021 expectations, but management did say it expects T-Mobile (TMUS) to drive higher U.S. activity y/y predominantly from its 2.5GHz overlay, and that the timing of its Sprint site decommissioning might be more back-end weighted. We will monitor how much of an impact the Sprint tower sites churn might impact US revenues in the 2022-2024 timeframe, however, we expect the underlying growth in wireless data at 30%+ per year, plus the improving contribution from AMT’s international portfolio of towers in key growth emerging markets, will allow the company to continue to put up low to mid-teens growth over our investment horizon.”