Momentum Stock Watch: SBA Communications Corporation (SBAC)

Company Profile:

SBA Communications Corporation is a first choice provider and leading owner and operator of wireless communications infrastructure in North, Central, and South America. By “Building Better Wireless,” SBA generates revenue from two primary businesses ? site leasing and site development services. The primary focus of the Company is the leasing of antenna space on its multi-tenant communication sites to a variety of wireless service providers under long-term lease contracts.

Recent News:

The company reported net loss for the second quarter was $57.4 million or loss of 50 cents per share against net income of $9.2 million or 8 cents per share in the year-ago quarter. Total revenues increased 6.8% year over year to $456.3 million.

During the second quarter, the company expanded its portfolio, investing incremental capital in both new tower builds and acquisitions. It acquired 224 communication sites for $152.3 million.

 

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

SBAC’s strengths can be seen in its strong growth and better profitability compared with its peers. Technical indicators signal the bullish signs, as there is a bullish crossover in Stochastic oscillator, RSI is strong in the bullish zone and MACD is trying to cross back up. We rate SBA Communications Corporation (SBAC) a STRONG BUY.

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