Trade-Ideas LLC identified

SBA Communications

(

SBAC

) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified SBA Communications as such a stock due to the following factors:

  • SBAC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $88.0 million.
  • SBAC has traded 133,341 shares today.
  • SBAC is trading at 3.56 times the normal volume for the stock at this time of day.
  • SBAC is trading at a new high 3.00% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on SBAC:

SBA Communications Corporation owns and operates wireless communications tower structures, rooftops, and other structures that support antennas used for wireless communications in the United States and its territories, South America, Central America, and Canada. Currently there are 8 analysts that rate SBA Communications a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for SBA Communications has been 1.0 million shares per day over the past 30 days. SBA has a market cap of $12.9 billion and is part of the technology sector and telecommunications industry. The stock has a beta of 0.92 and a short float of 3.7% with 5.55 days to cover. Shares are down 2.1% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates SBA Communications as a

hold

. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, expanding profit margins and impressive record of earnings per share growth. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:

  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Diversified Telecommunication Services industry. The net income increased by 167.9% when compared to the same quarter one year prior, rising from -$79.03 million to $53.64 million.
  • The gross profit margin for SBA COMMUNICATIONS CORP is currently very high, coming in at 74.34%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 13.41% is above that of the industry average.
  • SBA COMMUNICATIONS CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, SBA COMMUNICATIONS CORP reported poor results of -$1.38 versus -$0.19 in the prior year. This year, the market expects an improvement in earnings ($0.87 versus -$1.38).
  • SBAC has underperformed the S&P 500 Index, declining 14.44% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • Net operating cash flow has decreased to $144.86 million or 18.80% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, SBA COMMUNICATIONS CORP has marginally lower results.

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