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Crown Castle (CCI) Stock Sinks As Market Gains: Here's Why

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The most recent trading session ended with Crown Castle (CCI - Free Report) standing at $113.97, reflecting a -0.48% shift from the previouse trading day's closing. The stock's change was less than the S&P 500's daily gain of 0.46%. Meanwhile, the Dow gained 0.48%, and the Nasdaq, a tech-heavy index, added 0.7%.

Coming into today, shares of the operator of wireless communications towers had gained 19.87% in the past month. In that same time, the Finance sector gained 7.77%, while the S&P 500 gained 4.85%.

The investment community will be closely monitoring the performance of Crown Castle in its forthcoming earnings report. The company is expected to report EPS of $1.78, down 3.78% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $1.65 billion, indicating a 6.54% decline compared to the corresponding quarter of the prior year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $7.51 per share and a revenue of $6.96 billion, signifying shifts of +1.76% and -0.43%, respectively, from the last year.

It is also important to note the recent changes to analyst estimates for Crown Castle. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Crown Castle is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, Crown Castle is currently trading at a Forward P/E ratio of 15.24. Its industry sports an average Forward P/E of 11.07, so one might conclude that Crown Castle is trading at a premium comparatively.

We can also see that CCI currently has a PEG ratio of 2.67. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The REIT and Equity Trust - Other was holding an average PEG ratio of 2.44 at yesterday's closing price.

The REIT and Equity Trust - Other industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 147, placing it within the bottom 42% of over 250 industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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