Crown Castle (CCI)

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Crown Castle (CCI) Outpaces Stock Market Gains: What You Should Know
By: Zacks Equity Research | December 19, 2019

Crown Castle (CCI) closed at $139.92 in the latest trading session, marking a +1.98% move from the prior day. This move outpaced the S&P 500's daily gain of 0.45%. Meanwhile, the Dow gained 0.49%, and the Nasdaq, a tech-heavy index, added 0.67%.

Coming into today, shares of the operator of wireless communications towers had gained 0.23% in the past month. In that same time, the Finance sector gained 2.49%, while the S&P 500 gained 2.44%.

CCI will be looking to display strength as it nears its next earnings release. In that report, analysts expect CCI to post earnings of $1.49 per share. This would mark 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.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.97 per share and revenue of $5.90 billion, which would represent changes of +8.94% and +8.79%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for CCI. 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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. The Zacks Consensus EPS estimate remained stagnant within the past month. CCI is currently sporting a Zacks Rank of #2 (Buy).

Looking at its valuation, CCI is holding a Forward P/E ratio of 22.97. This valuation marks a premium compared to its industry's average Forward P/E of 15.75.

Also, we should mention that CCI has a PEG ratio of 1.48. 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. The REIT and Equity Trust - Other industry currently had an average PEG ratio of 3.58 as of yesterday's close.

The REIT and Equity Trust - Other industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 87, which puts it in the top 35% of all 250+ industries.

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