Crown Castle International Corp (CCI): Today's Featured Telecommunications Winner

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Crown Castle International ( CCI) pushed the Telecommunications industry higher today making it today's featured telecommunications winner. The industry as a whole closed the day up 0.4%. By the end of trading, Crown Castle International rose 80 cents (1.1%) to $74.01 on average volume. Throughout the day, 2.1 million shares of Crown Castle International exchanged hands as compared to its average daily volume of 1.5 million shares. The stock ranged in a price between $72.79-$74.47 after having opened the day at $73.12 as compared to the previous trading day's close of $73.21. Other companies within the Telecommunications industry that increased today were: ClearOne ( CLRO), up 53%, Novatel Wireless ( NVTL), up 13.4%, Zhone Technologies ( ZHNE), up 9.8%, and Inteliquent ( IQNT), up 8.2%.
  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

Crown Castle International Corp., together with is subsidiaries, owns, operates, and leases shared wireless infrastructure primarily in the United States, Puerto Rico, and Australia. Crown Castle International has a market cap of $21.38 billion and is part of the technology sector. The company has a P/E ratio of 83.8, above the S&P 500 P/E ratio of 17.7. Shares are up 1.1% year to date as of the close of trading on Tuesday. Currently there are 12 analysts that rate Crown Castle International a buy, no analysts rate it a sell, and three rate it a hold.

TheStreet Ratings rates Crown Castle International as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, solid stock price performance, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.

On the negative front, Powerwave Technologies ( PWAV), down 6.9%, DragonWave ( DRWI), down 6.4%, Net Element International ( NETE), down 5.3%, and Internet Gold Golden Lines ( IGLD), down 5.2%, were all laggards within the telecommunications industry with AT&T ( T) being today's telecommunications industry laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the telecommunications industry could consider iShares Dow Jones US Telecom ( IYZ) while those bearish on the telecommunications industry could consider ProShares Ult Sht Telecommunication ( TLL).

It's Official: Action Alerts PLUS beats the S&P 500 with Dividends Reinvested! Cramer and Link were up 16.72% in 2012. Were you? See what they are trading for 14-days FREE.
null

If you liked this article you might like

Identifying Investment Opportunities; Tronc Seals a Deal -- ICYMI

Crown Castle Likely Headed for Higher Ground

Charter Stock Looks Attractive as Softbank Prepares to Make a Move

Lions Gate, EOG, Crown Castle Could Turn 'Toxic' in May

These Three Big Stocks Could Be About to Turn 'Toxic' in May