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SBA Communications SBAC shares soared 4% in the last trading session to close at $249.31. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 2.2% loss over the past four weeks.
The increased investor optimism in the stock can be attributed to the favorable operating environment.
This communications tower operator is expected to post quarterly funds from operations ( of $3.32 per share in its upcoming report, which represents a year-over-year change of -0.6%. Revenues are expected to be $668.95 million, down 2% from the year-ago quarter.
FFO and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in FFO estimate revisions are strongly correlated with near-term stock price movements.
For SBA Communications, the consensus FFO per share estimate for the quarter has been revised marginally lower over the last 30 days to the current level. And a negative trend in FFO estimate revisions doesn't usually translate 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 is part of the Zacks REIT and Equity Trust - Other industry. Global Net Lease GNL, another stock in the same industry, closed the last trading session 2.8% higher at $8.50. GNL has returned -7.3% in the past month.
Global Net Lease's consensus FFO per share estimate for the upcoming report has remained unchanged over the past month at $0.33. Compared to the company's year-ago EPS, this represents a change of -8.3%. Global Net Lease currently boasts a Zacks Rank of #4 (Sell).
SBA Communications (SBAC) shares soared 4% in the last trading session to close at $249.31. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 2.2% loss over the past four weeks.
Fundamental/tangible driver (s) to be added by Analyst
This communications tower operator is expected to post quarterly earnings of $3.32 per share in its upcoming report, which represents a year-over-year change of -0.6%. Revenues are expected to be $668.95 million, down 2% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.