As valuation multiples continue to get crushed and expectations of earnings deterioration related to the vast global economic shutdowns we’re seeing in the industry, value investors have an increasingly large pool of stocks to choose from.
In this article, I’m going to highlight why American Tower Corp. (NYSE:AMT) should be on everyone’s radar.
American Tower is the premier provider of cellular towers in North America, and has continued to grow in a fantastic fashion over the long-term for those investors who bought into the secular story around long-term growth in data usage via mobile phones.
The 5G revolution is now only just beginning, with the need for additional towers to support the increased data usage most analysts expect to continue to see in the years and decades to come upon us.
American Tower is in a unique and enviable position of having the vast majority of its network built out, making the capital spend to accommodate increased volumes perhaps not as high as many think.
For example, the marginal cost for American Tower to add one carrier to a tower which has two other carriers is small, but this increased revenue can be substantial when one considers the vast network of towers across the continent.
For investors looking for a company with a long-term secular growth story in place to propel growth when there otherwise is none in the economy, American Tower is a great place to start.
Invest wisely, my friends.