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Crown Castle (CCI) and T-Mobile US Signs Long-Term Agreement

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Crown Castle International Corp. CCI recently reached a 12-year long-term tower and small cell agreement with America’s supercharged Un-carrier, T-Mobile US, Inc. TMUS. The deal will support the continued build-out of TMUS' nationwide 5G network with enhanced access to CCI's towers and small cell locations.

Both Crown Castle and T-Mobile US are likely to gain from this long-term partnership. Given its ability to offer a holistic network solution with towers, fiber and small cells, CCI is well poised to grow with this deal, witnessing long-term tower and small cell revenue growth.

For T-Mobile, the agreement will allow the Un-carrier to expand and deepen its 5G network reach besides realizing financial synergies from its merger. Following the merger and subsequent integration with Sprint assets, T-Mobile redefined itself as a wireless behemoth in 2020.

Per management, “T-Mobile’s expanded alliance with long-term partner Crown Castle will fuel acceleration of our nationwide network build and provide synergies that we can further invest into that build – all in support of our Un-carrier mission to truly deliver 5G FOR ALL.”

Wireless services are advancing rapidly in terms of additional features and capabilities. Moreover, wireless data consumption is expected to increase considerably over the next several years, driven by an increased innovation and adoption of data-driven mobile devices and applications, such as machine-to-machine connections, social networking and streaming of video.

As the data volume of wireless and wired networks is growing rapidly, the network carriers continue spending more on network deployments to harness spectrum abilities as well as improve and densify their cell sites and coverage.

Crown Castle is well-positioned to gain from tailwinds, such as growth in mobile data usage, spectrum availability and high-network investments in wireless carriers.

Shares of this currently Zacks Rank #3 (Hold) Crown Castle have appreciated 13.3% in the past three months, outperforming the industry’s rally of 10.7%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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Zacks Investment Research

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T-Mobile holds a Zacks Rank of 3 at present. Shares of TMUS have declined 4.7% in the past three months.

The Zacks Consensus Estimate for T-Mobile’s 2021 earnings per share has moved marginally south over the past month. Over the last four quarters, TMUS’s earnings per share surpassed the consensus mark on all occasions, the average being 55.3%.

Stocks to Consider

Some better-ranked stocks from the REIT sector are Extra Space Storage EXR and Cedar Realty Trust CDR.

Extra Space flaunts a Zacks Rank #1 (Strong Buy) at present. Shares of EXR have gained 26.9% in the past six months.

The Zacks Consensus Estimate for Extra Space’s 2021 funds from operations (FFO) per share has been raised 3.3% over the past two months. Over the last four quarters, EXR’s FFO per share surpassed the consensus mark on all occasions, the average being 5.9%.

The Zacks Consensus Estimate for Cedar Realty’s 2021 FFO per share has been raised 2.6% to $2.36 in the past two months. Over the last four quarters, CDR’s FFO per share surpassed the consensus mark twice and missed the same on the remaining two occasions, the average beat being 6.4%.

Currently, CDR sports a Zacks Rank of 1. Shares of Cedar Realty have appreciated 47% in the past six months.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Crown Castle International Corporation (CCI) : Free Stock Analysis Report

Extra Space Storage Inc (EXR) : Free Stock Analysis Report

TMobile US, Inc. (TMUS) : Free Stock Analysis Report

Cedar Realty Trust, Inc. (CDR) : Free Stock Analysis Report

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