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Crown Castle (CCI) Surges 15.6%: Is This an Indication of Further Gains?

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Crown Castle (CCI - Free Report) shares rallied 15.6% in the last trading session to close at $79.64. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 6.7% loss over the past four weeks.

The increased investor optimism toward the stock can be attributed to SpaceX’s $8-billion spectrum acquisition deal, which raised expectations of higher tower leasing demand and rental revenues for Crown Castle.

This operator of wireless communications towers is expected to post quarterly funds from operations (FFO) of $1.20 per share in its upcoming report, which represents a year-over-year change of +7.1%. Revenues are expected to be $1.01 billion, down 5.9% from the year-ago quarter.

While FFO and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in FFO estimate revisions and near-term stock price movements.

For Crown Castle, the consensus estimate for FFO per share for the quarter has been revised 0.5% higher over the last 30 days to the current level. And a positive trend in FFO estimate revision usually translates into price appreciation. So, make sure to keep an eye on CCI going forward to see if this recent jump can turn into more strength down the road.

 

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Crown Castle belongs to the Zacks REIT and Equity Trust - Other industry. Another stock from the same industry, Four Corners Property Trust (FCPT - Free Report) , closed the last trading session 0.1% higher at $21.28. Over the past month, FCPT has returned -11.8%.

For Four Corners Property, the consensus estimate for FFO per share for the upcoming report has remained unchanged over the past month at 47 cents. This represents a change of +4.4% from what the company reported a year ago. Four Corners Property currently has a Zacks Rank of #3 (Hold).

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