Back to top

Image: Bigstock

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

Read MoreHide Full Article

Crown Castle (CCI - Free Report) closed at $174.99 in the latest trading session, marking a +1.99% move from the prior day. The stock lagged the S&P 500's daily gain of 3.06%. Meanwhile, the Dow gained 2.68%, and the Nasdaq, a tech-heavy index, lost 0.09%.

Heading into today, shares of the operator of wireless communications towers had lost 8.51% over the past month, lagging the Finance sector's loss of 6.6% and the S&P 500's loss of 4.31% in that time.

Crown Castle will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.79, up 4.68% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.71 billion, up 8.2% from the prior-year quarter.

CCI's full-year Zacks Consensus Estimates are calling for earnings of $7.38 per share and revenue of $6.94 billion. These results would represent year-over-year changes of +6.19% and +9.53%, respectively.

Investors should also note any recent changes to analyst estimates for Crown Castle. Recent revisions tend to reflect the latest near-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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.05% higher. Crown Castle is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, Crown Castle is currently trading at a Forward P/E ratio of 23.25. For comparison, its industry has an average Forward P/E of 12.57, which means Crown Castle is trading at a premium to the group.

The REIT and Equity Trust - Other industry is part of the Finance sector. This group has a Zacks Industry Rank of 102, putting it in the top 41% 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.

To follow CCI in the coming trading sessions, be sure to utilize Zacks.com.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Crown Castle Inc. (CCI) - free report >>

Published in