When building your watchlist, focus on stocks with an 80 or higher RS Rating. SBA Communications just met that criteria with a new score of 81.
The 81 score indicates that Boca Raton, Fla.-based SBA Communications' stock has outperformed 81 of all stocks on price performance over the past year. Additionally, market research shows that the stocks that go on to make the biggest gains often have an 80 or better RS Rating as they begin their biggest climbs. SBA is now in that elite group of stocks.
SBA Communications is a leader in a hot market. It operates cellphone towers and leases to cellphone service providers such as AT&T, T-Mobile and Sprint parent T-Mobile US, and Verizon. SBA stock was on track Tuesday afternoon for a ninth straight day higher, up more than 2% for the day at 362.68.
Among its other key ratings, SBA Communications has a an OK but not great 63 Composite Rating. Its EPS Rating is just 36 although it has been consistently reported growth in the teens, just not the high percentage level some growth stock investors look for. Its C Accumulation/Distribution Rating shows that roughly as many institutional investors are buying its shares as selling them.
SBA Communications posted 13% earnings growth on a year-over-year basis last quarter, to $2.81 per share. The prior three quarters its EPS rose 13%, 15% and 14%. Sales climbed 11% to $595.3 million in its most recent quarter. The next quarterly results are expected on or around April 26.
See How IBD Helps You Make More Money In Stocks
SBA Communications is building a cup-without-handle pattern with a 391.25 entry. See if the stock can break out in volume at least 40% above average.
The company holds the No. 128 rank among its peers in the Finance-Property REITs industry group. Extra Space Storage and Apple Hospitality REIT are among the group's highest-rated stocks.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
IBD's proprietary RS Rating identifies technical performance by showing how a stock's price movement over the last 52 weeks compares to that of the other stocks in our database.
