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Crown Castle (CCI) Outpaces Stock Market Gains: What You Should Know

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Crown Castle (CCI - Free Report) closed the most recent trading day at $150.50, moving +0.36% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.33%. Meanwhile, the Dow gained 0.3%, and the Nasdaq, a tech-heavy index, added 0.67%.

Heading into today, shares of the operator of wireless communications towers had gained 7.54% over the past month, outpacing the Finance sector's gain of 0.6% and the S&P 500's gain of 3.24% 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. The company is expected to report EPS of $1.49, up 4.93% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.48 billion, up 4.57% from the year-ago period.

It is also important to note the recent changes to analyst estimates for CCI. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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 has moved 0.03% lower. CCI is currently sporting a Zacks Rank of #4 (Sell).

Valuation is also important, so investors should note that CCI has a Forward P/E ratio of 23.51 right now. For comparison, its industry has an average Forward P/E of 15.72, which means CCI is trading at a premium to the group.

It is also worth noting that CCI currently has a PEG ratio of 1.52. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. REIT and Equity Trust - Other stocks are, on average, holding a PEG ratio of 3.43 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 177, putting it in the bottom 31% 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.

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


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