In the latest trading session, Crown Castle (CCI) closed at $168.96, marking a +1.94% move from the previous day. This move outpaced the S&P 500's daily gain of 0.29%. Meanwhile, the Dow lost 0.24%, and the Nasdaq, a tech-heavy index, added 0.28%.
Heading into today, shares of the operator of wireless communications towers had gained 0.3% over the past month, outpacing the Finance sector's loss of 0.32% and lagging the S&P 500's gain of 2.96% in that time.
CCI will be looking to display strength as it nears its next earnings release, which is expected to be July 29, 2020. The company is expected to report EPS of $1.48, unchanged from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.44 billion, down 2.59% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.09 per share and revenue of $5.96 billion. These totals would mark changes of +7.03% and +2.01%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for CCI. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.17% lower within the past month. CCI is currently a Zacks Rank #3 (Hold).
Looking at its valuation, CCI is holding a Forward P/E ratio of 27.22. Its industry sports an average Forward P/E of 14.65, so we one might conclude that CCI is trading at a premium comparatively.
We can also see that CCI currently has a PEG ratio of 1.3. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. REIT and Equity Trust - Other stocks are, on average, holding a PEG ratio of 3.58 based on yesterday's closing prices.
The REIT and Equity Trust - Other industry is part of the Finance sector. This group has a Zacks Industry Rank of 171, putting it in the bottom 33% of all 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.