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Crown Castle (CCI) Dips More Than Broader Markets: What You Should Know

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Crown Castle (CCI - Free Report) closed the most recent trading day at $189.62, moving -1.01% from the previous trading session. This move lagged the S&P 500's daily loss of 0.72%.

Heading into today, shares of the operator of wireless communications towers had gained 6.22% over the past month, outpacing the Finance sector's loss of 2.43% and the S&P 500's gain of 0.11% in that time.

Investors will be hoping for strength from Crown Castle as it approaches its next earnings release. In that report, analysts expect Crown Castle to post earnings of $1.72 per share. This would mark a year-over-year decline of 26.18%. Meanwhile, our latest consensus estimate is calling for revenue of $1.62 billion, up 8.73% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.89 per share and revenue of $6.31 billion. These totals would mark changes of +1.62% and +7.99%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Crown Castle. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Crown Castle is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note Crown Castle's current valuation metrics, including its Forward P/E ratio of 27.81. Its industry sports an average Forward P/E of 18.69, so we one might conclude that Crown Castle is trading at a premium comparatively.

Meanwhile, CCI's PEG ratio is currently 2.78. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The REIT and Equity Trust - Other industry currently had an average PEG ratio of 2.93 as of yesterday's close.

The REIT and Equity Trust - Other industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 150, which puts it in the bottom 41% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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