Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a "roof leaker" (crossing below the 200-day simple moving average on higher than normal relative volume) candidate. In addition to specific proprietary factors, Trade-Ideas identified Crown Castle International as such a stock due to the following factors:
- CCI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $184.1 million.
- CCI has traded 211,673 shares today.
- CCI is trading at 1.67 times the normal volume for the stock at this time of day.
- CCI crossed below its 200-day simple moving average.
'Roof Leaker' stocks are worth watching because trading stocks that begin to experience a breakdown can lead to potentially massive losses. Once psychological and technical resistance barriers like the 200-day moving average are breached on higher than normal relative volume, the stock may then be subject to emotional selling from investors that can continue to drive the stock lower. Regardless of the impetus behind the price and volume action, when a stock moves with weakness and volume it can indicate the start of a new, potentially dangerous, trend.
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More details on CCI:
Crown Castle International Corp., together with its subsidiaries, owns, operates, and leases shared wireless infrastructure in the United States and Australia. The stock currently has a dividend yield of 1.9%. CCI has a PE ratio of 287.8. Currently there are 10 analysts that rate Crown Castle International a buy, no analysts rate it a sell, and 3 rate it a hold.
The average volume for Crown Castle International has been 2.4 million shares per day over the past 30 days. Crown Castle International has a market cap of $25.0 billion and is part of the technology sector and telecommunications industry. The stock has a beta of 0.39 and a short float of 2.1% with 2.45 days to cover. Shares are up 0.6% year-to-date as of the close of trading on Thursday.
rates Crown Castle International as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations, increase in net income and growth in earnings per share. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.
Highlights from the ratings report include:
- CCI's revenue growth has slightly outpaced the industry average of 8.8%. Since the same quarter one year prior, revenues rose by 18.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Real Estate Investment Trusts (REITs) industry. The net income increased by 556.4% when compared to the same quarter one year prior, rising from $15.46 million to $101.50 million.
- Net operating cash flow has increased to $362.28 million or 26.39% when compared to the same quarter last year. In addition, CROWN CASTLE INTL CORP has also vastly surpassed the industry average cash flow growth rate of -41.22%.
- CROWN CASTLE INTL CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, CROWN CASTLE INTL CORP reported lower earnings of $0.28 versus $0.64 in the prior year. This year, the market expects an improvement in earnings ($1.18 versus $0.28).
- In its most recent trading session, CCI has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Despite the decline in its share price over the last year, this stock is still more expensive (when compared to its current earnings) than most other companies in its industry. We feel, however, that other strengths this company displays compensate for this.
- You can view the full Crown Castle International Ratings Report.