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 0.6%. By the end of trading, SBA Communications fell 85 cents (-1.2%) to $69.79 on heavy volume. Throughout the day, 3.6 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 $69.35-$70.90 after having opened the day at $70.70 as compared to the previous trading day's close of $70.64. Other companies within the Diversified Services industry that declined today were: ITT Educational Services ( ESI), down 19.3%, DLH Holdings ( DLHC), down 12.5%, Swisher Hygiene ( SWSH), down 11.6%, and Career Education Corporation ( CECO), down 6.7%.
  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

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 $9.03 billion and is part of the services sector. Shares are up 0.7% year to date as of the close of trading on Friday. Currently there are 13 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 good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and feeble growth in the company's earnings per share.

On the positive front, Innotrac Corporation ( INOC), up 10.2%, EnviroStar ( EVI), up 9.3%, SoundBite Communications ( SDBT), up 7.9%, and RLJ Entertainment ( RLJE), up 7.9%, were all gainers within the diversified services industry with AthenaHealth ( ATHN) 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).

HOLIDAY SPECIAL: Let Jim Cramer show you every trade he is making in his $2.5 Million portfolio. Join now for 14-days FREE. Sign up today to get e-mail alerts before every trade.