12 Best Infrastructure Stocks to Buy According to Hedge Funds

8. Crown Castle Inc. (NYSE:CCI)

Number of Hedge Fund Holders: 34

Crown Castle Inc. (NYSE:CCI) owns, operates, and leases a network of over 40,000 cell towers and about 90,000 route miles of fiber across major US markets. This infrastructure supports small cells and fiber solutions and connects communities and businesses to essential data, technology, and wireless services.

The company’s FQ3 2024 results were strongly driven by its infrastructure assets. It projects a 5% revenue growth in FY24, fueled by towers, small cells, and fiber, which capitalize on the rising data demand. For towers, the company is focused on revenue growth via digitization and automation, improving co-location and installations. Multi-year agreements with carriers also provide revenue stability. Small cells are seeing a strategic shift, as high-return opportunities are prioritized. At the same time, canceling low-yielding nodes saves $800 million in capital expenditure for the company, which improves the backlog and drives double-digit revenue growth.

These infrastructure-focused strategies are driving revenue growth and improved profitability. Adjusted EBITDA increased 3% in FQ3. Crown Castle Inc. (NYSE:CCI) also identified $65 million in operating cost reductions, compared to an initial forecast of $60 million. This is expected to reduce FY24 net capital expenditures by $300 million.

Columbia Seligman Global Technology Fund stated the following regarding Crown Castle Inc. (NYSE:CCI) in its Q3 2024 investor letter:

“The fund held two out-of-benchmark positions in Real Estate Investment Trust (REIT) companies American Tower Corporation and Crown Castle Inc. (NYSE:CCI). REITs have historically performed well during periods of declining interest rates due to lower borrowing costs. The two companies performed very well during the third quarter after the Federal Reserve cut interest rates 50 basis points in September, with the expectation for additional cuts soon.”