American Tower Corp (NYSE:AMT) is known as the leading operator and developer of wireless and broadcast communication real estate. American Tower Corp (NYSE:AMT) shares have moved quickly in 2014 and the stock year-to-date gain was 26%, as compared to 11% of its S&P 500 index and it can still run more. There are three reasons why it could continue to rise for the year 2015.
1. Dominant in a very essential industry
One can’t deny the cell towers importance as the wireless industry changes again and again and it evolves into new formats for data communication and mobile voice. On the other hand, the investors only have few options in mobile tower space, and American Tower Stock (NYSE:AMT) is competing against Crown Castle International (NYSE:CCI) and SBA Communication (NASDAQ:SBAC). However, it is open knowledge as to who is the leader of the pack. The American Tower Corp (NYSE:AMT) lead in 12 month operating margin is 38% compared with Crown Castle International (NYSE:CCI) 29% and SBA Communication (NASDAQ:SBAC) 24%, and it is no different if you look at the net income and cash flow. American Tower Corp (NYSE:AMT) has beaten its rivals in every category. So, it can be said that American Tower (NYSE:AMT)’s is dominating this industry and they are here to stay for a long time. The investors are looking at this as a very good starting point.
2. Having High Growth and Facing Low Risk
It may seem impossible, but American Tower Corp (NYSE:AMT) shows strong growth, facing low operating risk. The growth annual run rate for quarterly sale is 29% and earnings increasing 15%. These numbers are very impressive even for a hottest stock in growth. On a long term basis, this business model for cell towers is very stable for good results. American Tower Corp (NYSE:AMT) has done multi years lease deals with its customers and shielded them from downturns. There over 70% contracts still have five years or more remaining regarding their lease schedules.
3. International Investments on high
Against its all American name, the company has done investment overseas. Last month, they invested in Brazil and Nigeria, buying out two tower networks for $2.3 billion. This increases there tower count to 11,000 sites worldwide, which is nearly 16% growth. They are not the only one though, for the last three years or so, Crown Castle International (NYSE:CCI) has 17,000 tower sites, but they are investing in mature market. The American Towers Corp (NYSE:AMT) are investing in developing markets. The perspective is that Brazilian gross national income for last decade soared 80% and Nigeria saw their economy tripled in size. On the other hand, the United States growth was 31% and that is for the same period
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American Tower Corp (NYSE:AMT) has just started investing in new locations globally without any long term cap in sight and American Tower Corp’s (NYSE:AMT) pursue of these opportunities is very eye catching in emerging markets. The company seems to have quite a growth potential and has picked great locations as its global hubs.