Crown Castle (CCI) Sees a More Significant Dip Than Broader Market: Some Facts to Know
Crown Castle (CCI) closed at $115.19 in the latest trading session, marking a -0.79% move from the prior day. This change lagged the S&P 500's 0.28% loss on the day. On the other hand, the Dow registered a loss of 0.06%, and the technology-centric Nasdaq decreased by 0.56%.
Shares of the operator of wireless communications towers have depreciated by 1% over the course of the past month, underperforming the Finance sector's gain of 8.34% and the S&P 500's gain of 5.24%.
The investment community will be paying close attention to the earnings performance of Crown Castle in its upcoming release. The company is predicted to post an EPS of $1.78, indicating a 3.78% decline compared to the equivalent 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.
It is also important to note the recent changes to analyst estimates for Crown Castle. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Crown Castle is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Crown Castle has a Forward P/E ratio of 15.45 right now. This denotes a premium relative to the industry's average Forward P/E of 11.64.
It's also important to note that CCI currently trades at a PEG ratio of 2.71. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the REIT and Equity Trust - Other industry had an average PEG ratio of 2.46.
The REIT and Equity Trust - Other industry is part of the Finance sector. This group has a Zacks Industry Rank of 142, putting it in the bottom 44% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Crown Castle Inc. (CCI) : Free Stock Analysis Report
