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

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In the latest trading session, Crown Castle (CCI - Free Report) closed at $139.45, marking a +0.42% move from the previous day. This change lagged the S&P 500's 0.49% gain on the day. Meanwhile, the Dow gained 0.57%, and the Nasdaq, a tech-heavy index, added 0.67%.

Prior to today's trading, shares of the operator of wireless communications towers had gained 3.63% over the past month. This has outpaced the Finance sector's gain of 1.73% and the S&P 500's gain of 3.03% in that time.

Wall Street will be looking for positivity from CCI as it approaches its next earnings report date. This is expected to be February 26, 2020. On that day, CCI is projected to report earnings of $1.49 per share, which would represent year-over-year growth of 4.93%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.48 billion, up 4.57% from the year-ago period.

Investors might also notice recent changes to analyst estimates for CCI. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for 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. Within the past 30 days, our consensus EPS projection remained stagnant. CCI is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that CCI has a Forward P/E ratio of 21.77 right now. This valuation marks a premium compared to its industry's average Forward P/E of 15.19.

Also, we should mention that CCI has a PEG ratio of 1.4. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. REIT and Equity Trust - Other stocks are, on average, holding a PEG ratio of 3.47 based on yesterday's closing prices.

The REIT and Equity Trust - Other industry is part of the Finance sector. This group has a Zacks Industry Rank of 179, putting it in the bottom 30% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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