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Crown Castle (CCI) Gains But Lags Market: What You Should Know

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Crown Castle (CCI - Free Report) closed at $197 in the latest trading session, marking a +1.08% move from the prior day. This change lagged the S&P 500's 1.64% gain on the day. Meanwhile, the Dow gained 1.08%, and the Nasdaq, a tech-heavy index, added 0.45%.

Heading into today, shares of the operator of wireless communications towers had gained 8.15% over the past month, outpacing the Finance sector's loss of 3.51% and the S&P 500's loss of 0.83% in that time.

Wall Street will be looking for positivity from Crown Castle as it approaches its next earnings report date. 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, the Zacks Consensus Estimate for revenue is projecting net sales of $1.62 billion, up 8.73% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $6.89 per share and revenue of $6.31 billion, which would represent changes of +1.62% and +7.99%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Crown Castle. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Crown Castle currently has a Zacks Rank of #3 (Hold).

In terms of valuation, Crown Castle is currently trading at a Forward P/E ratio of 28.29. This valuation marks a premium compared to its industry's average Forward P/E of 17.79.

It is also worth noting that CCI currently has a PEG ratio of 2.83. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The REIT and Equity Trust - Other was holding an average PEG ratio of 2.94 at yesterday's closing price.

The REIT and Equity Trust - Other industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 114, which puts it in the top 45% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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