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SBA Communications (SBAC) shares rallied 5.3% in the last trading session to close at $230.87. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 0.5% loss over the past four weeks.
The increased optimism is driven by the solid underlying fundamentals of the wireless communications infrastructure sector.
This communications tower operator is expected to post quarterly funds from operations (FFO) of $3.11 per share in its upcoming report, which represents a year-over-year change of -5.5%. Revenues are expected to be $657 million, down 0.1% from the year-ago quarter.
While FFO and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in FFO estimate revisions and near-term stock price movements.
For SBA Communications, the consensus FFO per share estimate for the quarter has been revised 1% higher over the last 30 days to the current level. And a positive trend in FFO estimate revision usually translates into price appreciation. So, make sure to keep an eye on SBAC going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
SBA Communications belongs to the Zacks REIT and Equity Trust - Other industry. Another stock from the same industry, Alexandria Real Estate Equities (ARE), closed the last trading session 6.6% lower at $86.25. Over the past month, ARE has returned -9.7%.
Alexandria Real Estate Equities' consensus FFO per share estimate for the upcoming report has changed +0.5% over the past month to $2.29. Compared to the company's year-ago FFO per share, this represents a change of -2.6%. Alexandria Real Estate Equities currently boasts a Zacks Rank of #3 (Hold).
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This article originally published on Zacks Investment Research (zacks.com).