Top Stock to Buy #5 – SBA Communications (SBAC)
SBA Communications (SBAC), a leading operator of wireless communications towers in North and Central America, leases antenna space. It owns 17,539 towers, as of March 31. Its major customers are Sprint (S), AT&T (T), Verizon Wireless (VZ) and T-Mobile.
S&P has a 12-month target of $92, based on a multiple of 19 times the average of 2014 and 2015 free cash flow. Barclays’ analysts cited SBAC as a tower company that will benefit from the global and domestic scale of expansion in this sector.
Following a run from $70 in February to $82 in May, the stock revisited the advance and appears to have established a bottom at its 200-day moving average at about $71. Note the strong recent buy signal from its MACD.
Buy SBAC on a break through its bearish resistance line at over $74 for a trade to $80. Investors may want to hold this quality stock as a core holding in the telecommunications services sector.