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The price performance of Crown Castle was impressive over the past three months. The stock added 10.9%, outshining the Zacks categorized Reit- Eqty Trust Other industry’s gain of 4.4% over the same time frame.
We are also impressed with Crown Castle’s efforts to reward its shareholders with quarterly cash dividends. On Feb 17, 2017, the board of directors of Crown Castle declared a quarterly cash dividend of 95 cents per common share. The quarterly dividend will be paid on Mar 31, 2017 to stockholders of record at the closure of business on Mar 17, 2017.
Crown Castle’s extensive tower portfolio, increased demand for infrastructure, strong business outlook, healthy leasing activity, continued acquisition of towers and growing demand for mobile broadband are major positives. Wireless services are rapidly gaining ground courtesy of additional features and capabilities. Much of the infrastructure and upgrades require effective site management of cell towers and equipment.
Crown Castle effectively addresses this opportunity as over 90% of its quarterly revenues come from wireless service providers like Verizon Communications Inc. (VZ - Free Report) , AT&T Inc. (T - Free Report) and T-Mobile US Inc. (TMUS - Free Report) . Crown Castle had acquired 9,700 wireless towers from AT&T and taken over 7,200 wireless towers of T-Mobile US.
The deployment of the upcoming 5G network will drive growth on both the company’s tower and small cell assets as the wireless carriers look to expand and enhance their networks to provide the coverage, capacity and speed needed to support mobile video, the Internet of Things (IoT), fixed wireless broadband.
However, the company’s operation in a consolidated wireless industry has reduced demand for cell tower deployment and is therefore expected to dent Crown Castle’s top line considerably. Further, new technologies have reduced demand for site leases. Also, owing to its expansive international presence, Crown Castle remains exposed to foreign currency exchange rate risks. High customer concentration is also a concern for the company.
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Here's Why You Should Hold on Crown Castle (CCI) Amid Risks
On Apr 7, 2017, we issued an updated research report on Crown Castle International Corp. (CCI - Free Report) , a leading wireless communication tower operator in the U.S. The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The price performance of Crown Castle was impressive over the past three months. The stock added 10.9%, outshining the Zacks categorized Reit- Eqty Trust Other industry’s gain of 4.4% over the same time frame.
We are also impressed with Crown Castle’s efforts to reward its shareholders with quarterly cash dividends. On Feb 17, 2017, the board of directors of Crown Castle declared a quarterly cash dividend of 95 cents per common share. The quarterly dividend will be paid on Mar 31, 2017 to stockholders of record at the closure of business on Mar 17, 2017.
Crown Castle’s extensive tower portfolio, increased demand for infrastructure, strong business outlook, healthy leasing activity, continued acquisition of towers and growing demand for mobile broadband are major positives. Wireless services are rapidly gaining ground courtesy of additional features and capabilities. Much of the infrastructure and upgrades require effective site management of cell towers and equipment.
Crown Castle effectively addresses this opportunity as over 90% of its quarterly revenues come from wireless service providers like Verizon Communications Inc. (VZ - Free Report) , AT&T Inc. (T - Free Report) and T-Mobile US Inc. (TMUS - Free Report) . Crown Castle had acquired 9,700 wireless towers from AT&T and taken over 7,200 wireless towers of T-Mobile US.
The deployment of the upcoming 5G network will drive growth on both the company’s tower and small cell assets as the wireless carriers look to expand and enhance their networks to provide the coverage, capacity and speed needed to support mobile video, the Internet of Things (IoT), fixed wireless broadband.
However, the company’s operation in a consolidated wireless industry has reduced demand for cell tower deployment and is therefore expected to dent Crown Castle’s top line considerably. Further, new technologies have reduced demand for site leases. Also, owing to its expansive international presence, Crown Castle remains exposed to foreign currency exchange rate risks. High customer concentration is also a concern for the company.
Zacks' Hidden Trades
While we share many recommendations and ideas with the public, certain moves are hidden from everyone but selected members of our portfolio services. Would you like to peek behind the curtain today and view them?
Starting now, for the next month, I invite you to follow all Zacks' private buys and sells in real time from value to momentum...from stocks under $10 to ETF to option movers...from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). You can even look inside portfolios so exclusive that they are normally closed to new investors. Click here for Zacks' secret trade>>