How Is Crown Castle’s Stock Performance Compared to Other Real Estate Stocks?
Valued at a market cap of $40.9 billion, Crown Castle Inc. (CCI) is a real estate investment trust (REIT) that owns, operates, and leases wireless infrastructure across the U.S. Its portfolio includes cell towers, small cells, and fiber networks, which are essential for mobile connectivity and 5G deployment. Headquartered in Houston, Texas, Crown Castle serves wireless carriers, technology companies, and enterprises by providing shared infrastructure solutions.
Companies valued at $10 billion or more are generally labelled as “large-cap” stocks, and Crown Castle fits this description perfectly. The company generates stable, recurring revenue through long-term contracts and is known for its high dividend yield.
Despite its notable strengths, CCI shares have fallen 21.9% from their 52-week high of $120.92 touched on Sept. 16, 2024. Over the past three months, CCI has dipped 4.6%, underperforming the Real Estate Select Sector SPDR Fund’s (XLRE) marginal rise during the same period.
In the long term, CCI climbed 4.1% on a YTD basis, exceeding XLRE’s 3% rise. However, over the past 52 weeks, Castle Crown shares have plunged 19.6%, lagging behind XLRE’s 5.1% drop.
CCI has faced recent volatility and continues to trade beneath its 50-day and 200-day moving averages since the end of last month, reinforcing a bearish trend.
On Jul. 23, CCI announced better-than-expected Q2 results, and its shares surged 3.8% in the following trading session. While the company’s top-line dropped 4.2% year-over-year to $1.1 billion, it surpassed the consensus estimates by 1.9%. Additionally, AFFO of $1.02 also exceeded Wall Street’s expectations by 2%. Strong operational execution and higher customer leasing activity drove CCI’s results, prompting the company to lift its fiscal 2025 outlook. It now forecasts annual site rental revenues of $4 billion and projects AFFO per share of $4.20 at the midpoint.
In the dynamic real estate sector, rival American Tower Corporation (AMT) has outperformed, gaining 6.1% on a YTD basis and falling 18.4% over the past year.
Analysts are moderately optimistic about its prospects. CCI has a consensus "Moderate Buy" rating from 19 analysts. Its mean price target of $118.29 represents an upswing potential of 25.2% from the prevailing price levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.