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Crown Castle (CCI) Registers a Bigger Fall Than the Market: Important Facts to Note

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In the latest trading session, Crown Castle (CCI - Free Report) closed at $117.09, marking a -0.73% move from the previous day. The stock's change was less than the S&P 500's daily loss of 0.39%. At the same time, the Dow lost 0.19%, and the tech-heavy Nasdaq lost 0.59%.

Prior to today's trading, shares of the operator of wireless communications towers had gained 22.15% over the past month. This has outpaced the Finance sector's gain of 5.92% and the S&P 500's gain of 5.08% in that time.

The investment community will be closely monitoring the performance of Crown Castle in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $1.78, reflecting a 3.78% decrease from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $1.65 billion, reflecting a 6.54% fall from the equivalent quarter last year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $7.51 per share and revenue of $6.96 billion, indicating changes of +1.76% and -0.43%, respectively, compared to the previous year.

Any recent changes to analyst estimates for Crown Castle should also be noted by investors. 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.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. As of now, Crown Castle holds a Zacks Rank of #3 (Hold).

In the context of valuation, Crown Castle is at present trading with a Forward P/E ratio of 15.7. Its industry sports an average Forward P/E of 10.91, so one might conclude that Crown Castle is trading at a premium comparatively.

One should further note that CCI currently holds a PEG ratio of 2.75. 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. REIT and Equity Trust - Other stocks are, on average, holding a PEG ratio of 2.24 based on yesterday's closing prices.

The REIT and Equity Trust - Other industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 151, which puts it in the bottom 41% of all 250+ industries.

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

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