Crown Castle (CCI) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices. Individual investors often find it hard to make decisions based on rating upgrades by Wall Street analysts, since these are mostly driven by subjective factors that are hard to see and measure in real time. In these situations, the Zacks rating system comes in hand ...

Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted upward by 1% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period. While it's common for investors to rely on consensus earnings and revenue estimates for assessing how the business may have performed during the quarter, exploring analysts' forecasts for key metrics can yield valuable insights. Analysts predict that the 'Revenues- Site rental' ...

Group 1: Long-term Investment Principles - The principle of letting winners run is emphasized, with a focus on compounding and long-term stocks that have durable competitive advantages [1][2] Group 2: VeriSign (VRSN) - VeriSign plays a critical role in internet infrastructure, providing .com and .net domains under exclusive agreements with ICANN, ensuring its monopoly position [4] - The company has maintained high profitability with a 5-year average net margin of 54% and a 39% return on equity, reinforcing the strong economics of its domain registry business [5] - VRSN stock is currently trading at 22 times forward earnings, the cheapest in five years, indicating a strong investment opportunity [16] Group 3: Crown Castle (CCI) - Crown Castle operates in the cell tower sector and is considered undervalued with a forward price-to-funds-from-operations (P/FFO) of 14 and a dividend yield of 6.1% [7] - The cell tower business contributes 68% of revenues, providing stable income, and the growth in mobile data is expected to drive demand for cell towers [8] - The company has significant operating leverage due to long-term contracts with annual rent escalators of 3% [17] - Activist pressure from Elliott Management is expected to unlock shareholder value through strategic improvements [18] Group 4: Zoetis (ZTS) - Zoetis is a leader in the global animal health market, with approximately 20% of revenues from patented products, allowing it to charge premium prices [10] - The company has achieved an 8% annual revenue growth over the past 11 years, supported by the ongoing trend of pet humanization [11] - In Q4 2023, Zoetis reported an 8% year-over-year revenue growth, which accelerated to 10% in Q1 2024, driven by new product launches [20] - The company has maintained a 3-year diluted EPS CAGR of 11.8% and operating margins above 35% [22]

In a market where growth stocks continue to steal the spotlight and propel indices to new highs, it's easy to overlook industries that are perceived as sluggish. One such industry is telecom, with its constituents often finding themselves disregarded. Yet, this neglect has left numerous telecom stocks significantly undervalued. Thus, many names in the space now offer investors compelling opportunities. Given that telecom stocks are known for their stable, recession-resistant cash flows, they tend to make gr ...

After a period of aggressive interest rate hikes aimed at taming inflation, the Federal Reserve is poised to shift gears in the coming months. With inflation moderating and approaching the Fed's 2% target, economists and investors anticipate rate cuts as early as September 2024. Lower interest rates typically benefit certain sectors through lower borrowing costs and by spurring higher demand. However, there is also another way lower rate cuts can help companies this year. COVID forced many companies to take ...

alfexe/iStock via Getty Images Pick #1: CCI - Yield 6.5% CCI maintains a five-year dividend CAGR of 7.6%, and its most recent payment hike was by 6.5% in October 2022. The telecom infrastructure REIT maintains a strong balance sheet with investment-grade ratings from leading credit agencies. During Q1, CCI increased the percentage of its fixed-rate debt from 68% to 90% and extended its weighted average maturity term from five to seven years. The REIT also decreased the percentage of secured debt from 47% to ...

In the current interest rate environment, where yields on fixed-income investments hover around 5% or higher, income-seeking investors have many alternatives. They either go for fixed, government-backed securities and generate a safe return or potentially go for stocks. The issue with the latter is that with the "risk-free" rate at such high rates, a stock offers a much higher yield to justify taking on the extra risks attached. A few years ago, when interest rates were just above 0%, it was quite common to ...

CCI identified opportunities for significant future enterprise fiber and small cell demand during their operational review. These opportunities arise from locations that are either situated on or near the company's existing high-quality fiber footprint. The expected annualized run-rate cost savings resulting from the staffing reductions, along with other operational savings, will mainly impact the Fiber segment and corporate departments. These measures are projected to lead to around $100 million in cost sa ...

Core Insights - Crown Castle Inc. is implementing operational changes to enhance efficiency and returns in its fiber solutions and small cells business, regardless of the ongoing strategic review outcomes [2][3][5] - The company anticipates a reduction in capital expenditures by approximately $275 million to $325 million in 2024, alongside a reduction in staffing levels by over 10%, which is expected to generate around $100 million in annualized cost savings [7][16][17] - The operational review identified significant future demand opportunities for enterprise fiber and small cells, particularly in areas close to its existing fiber footprint [4][5] Financial Outlook - The updated full year 2024 outlook includes a $30 million decrease in site rental revenues and a $95 million decrease in net income, primarily due to restructuring charges related to staffing reductions and office closures [8][9] - Adjusted EBITDA is expected to increase by $5 million, while AFFO is projected to rise by $25 million, benefiting from reduced interest expenses and operational cost savings [8][9][17] - The company expects organic revenue growth of 2% in fiber solutions for 2024, transitioning to 3% growth in 2025 [6][13] Strategic Focus - Crown Castle is shifting its investment strategy to focus on higher-return projects, particularly in small cells, by increasing the number of collocation nodes and reducing capital intensity [5][6] - The company plans to modify or cancel projects that do not align with its targeted investment focus, which may result in a reduction of 3,000 to 5,000 new revenue-generating small cell nodes in 2024 [5][6] - The strategic review of the fiber business remains active, with third-party engagement to explore potential alternatives [3][4]

Remember, not all dividend stocks are created equal. Therefore, it's crucial to find companies that boast a long history of reliable and growing payouts. Here're today's three dividend stocks if you're looking for passive income shares with long-term capital appreciation potential this June. Source: Casimiro PT / Shutterstock.com Investors have been pleased with the MLP's solid profitability metrics, including a net profit margin of over 10%. Reflecting its strong financial health, management declared a 5.1 ...