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Here's Why You Should Buy SBA Communications (SBAC) Stock Now
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It seems to be a wise decision to add SBA Communications Corporation (SBAC - Free Report) , given its efforts to extend business in select international markets with high growth characteristics. Moreover, amid growing demand for data volume and deployment of 5G network, wireless carriers are expanding and enhancing their networks. These positive trends are expected to drive demand for the company’s communications infrastructure assets.
SBA Communications is expected to witness year-over-year growth in funds from operations (FFO) per share in 2020. The company also beat estimates in the last four reported quarter, the average positive surprise being 2.8%.
Notably, SBA Communications has a number of other aspects that make it a solid investment choice.
Why the Stock is an Attractive Pick
Favorable industry tailwinds: Mobile subscriber growth has significantly boosted the wireless tower industry. Next-generation 4G LTE networks and increased usage of smartphones and tablets are creating impressive demand for the company’s site leasing business. With increasing smartphone adoption, greater broadband demand and plans for 4G service worldwide, the company is set to pursue international wireless infrastructure opportunities. Furthermore, wireless consumer demand is expected to considerably increase in the upcoming years supported by innovation and accelerated adoption of data-driven mobile devices and applications such as machine-to-machine connections, social networking and streaming of video.SBA Communications’ extensive infrastructure portfolio is well-positioned to meet such demands.
Encouraging FFO picture: SBA Communications’ projected FFO growth rate is 10.3% for 2020. This is higher than the industry average of 0.5%. Further, management expects 2020 AFFO per share in the range of $9.07-$9.47.
Strategic Portfolio Expansion: With decent presence in the United Sates and its territories, SBA Communications has developed or acquired thousands of towers throughout Central and South America and across Canada over the years. Presently, the company continues to expand its tower portfolio and seek new growth opportunities. Supported by strong industry fundamentals, the company is identifying international markets with high growth characteristics and extending its business in these regions. In fact, during the December-end quarter, it acquired 1,336 communication sites for a total cash consideration of $471.7 million.
Encouraging Dividend Payout: Solid dividend payouts remain the biggest attraction for REIT investors, and SBA Communications is boosting shareholder wealth through dividend hikes. Specifically, concurrent with its fourth-quarter 2019 earnings release, the company announced a quarterly cash dividend of 46.5 cents on its Class A common stock, indicating a 25.7% hike from its October-December quarter payout. Given the company’s financial position compared with the industry’s, this dividend rate is anticipated to be sustainable.
Other Stocks to Consider
One Liberty Properties, Inc.’s (OLP - Free Report) Zacks Consensus Estimate for 2020 FFO per share has moved up 2.7% to $1.89 over the past month. The stock currently sports a Zacks Rank of 1.
Innovative Industrial Properties, Inc.’s (IIPR - Free Report) Zacks Consensus Estimate for 2020 FFO per share has moved up 5% to $5.33 over the past month. At present, the stock sports a Zacks Rank of 1.
Gladstone Land Corp’s (LAND - Free Report) FFO per share estimate for the current year has moved 3.3% upward to 62 cents in the past month. The stock currently carries a Zacks Rank of 2.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
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Here's Why You Should Buy SBA Communications (SBAC) Stock Now
It seems to be a wise decision to add SBA Communications Corporation (SBAC - Free Report) , given its efforts to extend business in select international markets with high growth characteristics. Moreover, amid growing demand for data volume and deployment of 5G network, wireless carriers are expanding and enhancing their networks. These positive trends are expected to drive demand for the company’s communications infrastructure assets.
SBA Communications is expected to witness year-over-year growth in funds from operations (FFO) per share in 2020. The company also beat estimates in the last four reported quarter, the average positive surprise being 2.8%.
Its price performance also seems impressive. In fact, this Zacks Rank #2 (Buy) stock has gained 28.1% in the year-to-date period against the industry’s decline of 13.9%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Notably, SBA Communications has a number of other aspects that make it a solid investment choice.
Why the Stock is an Attractive Pick
Favorable industry tailwinds: Mobile subscriber growth has significantly boosted the wireless tower industry. Next-generation 4G LTE networks and increased usage of smartphones and tablets are creating impressive demand for the company’s site leasing business. With increasing smartphone adoption, greater broadband demand and plans for 4G service worldwide, the company is set to pursue international wireless infrastructure opportunities. Furthermore, wireless consumer demand is expected to considerably increase in the upcoming years supported by innovation and accelerated adoption of data-driven mobile devices and applications such as machine-to-machine connections, social networking and streaming of video.SBA Communications’ extensive infrastructure portfolio is well-positioned to meet such demands.
Encouraging FFO picture: SBA Communications’ projected FFO growth rate is 10.3% for 2020. This is higher than the industry average of 0.5%. Further, management expects 2020 AFFO per share in the range of $9.07-$9.47.
Strategic Portfolio Expansion: With decent presence in the United Sates and its territories, SBA Communications has developed or acquired thousands of towers throughout Central and South America and across Canada over the years. Presently, the company continues to expand its tower portfolio and seek new growth opportunities. Supported by strong industry fundamentals, the company is identifying international markets with high growth characteristics and extending its business in these regions. In fact, during the December-end quarter, it acquired 1,336 communication sites for a total cash consideration of $471.7 million.
Encouraging Dividend Payout: Solid dividend payouts remain the biggest attraction for REIT investors, and SBA Communications is boosting shareholder wealth through dividend hikes. Specifically, concurrent with its fourth-quarter 2019 earnings release, the company announced a quarterly cash dividend of 46.5 cents on its Class A common stock, indicating a 25.7% hike from its October-December quarter payout. Given the company’s financial position compared with the industry’s, this dividend rate is anticipated to be sustainable.
Other Stocks to Consider
One Liberty Properties, Inc.’s (OLP - Free Report) Zacks Consensus Estimate for 2020 FFO per share has moved up 2.7% to $1.89 over the past month. The stock currently sports a Zacks Rank of 1.
Innovative Industrial Properties, Inc.’s (IIPR - Free Report) Zacks Consensus Estimate for 2020 FFO per share has moved up 5% to $5.33 over the past month. At present, the stock sports a Zacks Rank of 1.
Gladstone Land Corp’s (LAND - Free Report) FFO per share estimate for the current year has moved 3.3% upward to 62 cents in the past month. The stock currently carries a Zacks Rank of 2.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>