Crown Castle International
) hit a new 52-week high of $80.52 on Aug 21, 2014. However, the
company ended yesterday's trading session a trifle lower at $80.00,
reflecting a solid 17.4% return over the past 12 months.
Over the last 30 days, Crown Castle witnessed strong upward
earnings estimate revisions for the current quarter leading to an
8% rise in the Zacks Consensus Estimate to 27 cents.
Higher usage of smartphones and tablets and increased deployment
of 4G LTE networks have propelled demand for tower requirement by
large carriers. Moreover, the acquisition of NextG Networks Inc.
(which comprises 7,000 Distributed Antenna Systems) and the
purchase of 7,200 wireless towers from T-Mobile USA have positioned
Crown Castle as the largest wireless tower operator in the U.S.
Based on such positive factors the company raised its guidance for
In the recently concluded second quarter of 2014, Crown Castle's
top line witnessed a strong 25% year-over-year growth and the
figure also surpassed the Zacks Consensus Estimate.
Meanwhile, in Jan, 2014, the company started operating as a Real
Estate Investment Trust (REIT). An REIT status benefits the company
in terms of tax savings and also enhances long-term shareholders'
wealth. Furthermore, operating as an REIT minimizes the weighted
average cost of capital. Following the conversion, Crown Castle
distributes 90% of its earnings through dividends every year,
thereby reducing tax.
Crown Castle currently has a Zacks Rank #3 (Hold).
Stocks That Warrant a Look
Other better-ranked stocks in the sector which are worth a look
include CommScope Holding Company, Inc. (
), Ericsson (
) and DragonWave Inc. (
). CommScope sports a Zacks Rank #1 (Strong Buy) while Ericsson and
DragonWave carry a Zacks Rank #2 (Buy).
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 (CCI): Free Stock Analysis Report
ERICSSON LM ADR (ERIC): Free Stock Analysis
DRAGONWAVE INC (DRWI): Free Stock Analysis
COMMSCOPE HLDG (COMM): Free Stock Analysis
To read this article on Zacks.com click here.