Crown Castle (CCI) Stock Drops Despite Market Gains: Important Facts to Note
Crown Castle (CCI) closed the latest trading day at $104.35, indicating a -1.34% change from the previous session's end. The stock fell short of the S&P 500, which registered a gain of 0.63% for the day. At the same time, the Dow added 0.2%, and the tech-heavy Nasdaq gained 0.82%.
The operator of wireless communications towers's shares have seen a decrease of 2.26% over the last month, not keeping up with the Finance sector's gain of 2.48% and the S&P 500's gain of 1.76%.
Market participants will be closely following the financial results of Crown Castle in its upcoming release. The company's earnings per share (EPS) are projected to be $1.71, reflecting a 10.47% decrease from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.63 billion, down 8.14% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $6.94 per share and revenue of $6.6 billion. These totals would mark changes of -8.08% and -5.43%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Crown Castle. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Currently, Crown Castle is carrying a Zacks Rank of #3 (Hold).
Digging into valuation, Crown Castle currently has a Forward P/E ratio of 15.23. This represents a premium compared to its industry's average Forward P/E of 11.11.
Also, we should mention that CCI has a PEG ratio of 2.67. 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. The REIT and Equity Trust - Other was holding an average PEG ratio of 2.35 at yesterday's closing price.
The REIT and Equity Trust - Other industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 140, finds itself in the bottom 45% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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Crown Castle Inc. (CCI) : Free Stock Analysis Report
