SBA Communications Corp (SBAC): Today's Featured Diversified Services Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

SBA Communications ( SBAC) pushed the Diversified Services industry lower today making it today's featured Diversified Services laggard. The industry as a whole closed the day down 0.2%. By the end of trading, SBA Communications fell $1.16 (-1.8%) to $64.84 on average volume. Throughout the day, 1.8 million shares of SBA Communications exchanged hands as compared to its average daily volume of 1.4 million shares. The stock ranged in price between $63.85-$66.05 after having opened the day at $65.90 as compared to the previous trading day's close of $66. Other companies within the Diversified Services industry that declined today were: Innovaro ( INV), down 19.6%, Innotrac Corporation ( INOC), down 11.6%, General Employment ( JOB), down 8.9%, and Acquity Group Ltd ADR ( AQ), down 8.1%.
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SBA Communications Corporation owns and operates wireless communications towers primarily in the United States, Canada, Costa Rica, El Salvador, Guatemala, Nicaragua, and Panama. SBA Communications has a market cap of $8.44 billion and is part of the services sector. The company has a P/E ratio of -48.7, below the S&P 500 P/E ratio of 17.7. Shares are up 55.4% year to date as of the close of trading on Wednesday. Currently there are 14 analysts that rate SBA Communications a buy, no analysts rate it a sell, and one rates it a hold.

TheStreet Ratings rates SBA Communications as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income and generally higher debt management risk.

On the positive front, CIBT Education Group ( MBA), up 16.3%, ChinaEdu Corporation ( CEDU), up 8.5%, Quad/Graphics Inc. Class A ( QUAD), up 8.3%, and SoundBite Communications ( SDBT), up 7.9%, were all gainers within the diversified services industry with Apollo Group ( APOL) being today's featured diversified services industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the diversified services industry could consider iShares Dow Jones US Cons Services ( IYC) while those bearish on the diversified services industry could consider ProShares Ultra Short Consumer Sers ( SCC).

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