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

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 lower today making it today's featured Telecommunications laggard. The industry as a whole closed the day up 0.5%. By the end of trading, Crown Castle International fell $1.07 (-1.5%) to $69.21 on average volume. Throughout the day, 2,685,771 shares of Crown Castle International exchanged hands as compared to its average daily volume of 1,886,300 shares. The stock ranged in price between $68.96-$70.57 after having opened the day at $70.35 as compared to the previous trading day's close of $70.28. Other companies within the Telecommunications industry that declined today were: Ambient Corporation ( AMBT), down 10.2%, Alvarion ( ALVR), down 6.6%, Telekomunikasi Indonesia (Persero) Tbk ( TLK), down 5.6% and Otelco Inc. Class A ( OTEL), down 4.9%.
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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 $20.8 billion and is part of the technology sector. The company has a P/E ratio of 135.8, above the S&P 500 P/E ratio of 17.7. Shares are down 2.6% year to date as of the close of trading on Friday. Currently there are 11 analysts that rate Crown Castle International a buy, no analysts rate it a sell, and 3 rate it a hold.

TheStreet Ratings rates Crown Castle International as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and disappointing return on equity.

On the positive front, On Track Innovations ( OTIV), down 7.6%, Cbeyond ( CBEY), down 7.6%, IDT Corporation Class B ( IDT), down 6.8% and magicJack VocalTec ( CALL), down 6.3% , were all gainers within the telecommunications industry with Nokia Oyj ( NOK) being today's featured telecommunications industry leader.

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).

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