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 up 0.1%. By the end of trading, SBA Communications fell $1.01 (-1.5%) to $68.27 on average volume. Throughout the day, 2.2 million shares of SBA Communications exchanged hands as compared to its average daily volume of 1.6 million shares. The stock ranged in price between $68.19-$69.37 after having opened the day at $69.30 as compared to the previous trading day's close of $69.28. Other companies within the Diversified Services industry that declined today were: Innovaro ( INV), down 15.7%, ATA ( ATAI), down 11%, Rainmaker Systems ( RMKR), down 6.3%, and Acquity Group Ltd ADR ( AQ), down 5.7%.
  • 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 $8.78 billion and is part of the services sector. Shares are down 2.1% year to date as of the close of trading on Monday. 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, WidePoint Corporation ( WYY), up 12.5%, Information Services Group ( III), up 5.4%, Versar ( VSR), up 4.8%, and NutriSystem ( NTRI), up 4.7%, were all gainers within the diversified services industry with KBR ( KBR) 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).

It's Official: Action Alerts PLUS beats the S&P 500 with Dividends Reinvested! Cramer and Link were up 16.72% in 2012. Were you? See what they are trading for 14-days FREE.
null

If you liked this article you might like

SBA Communications May be a Buy After a Test of Support

SBA Communications, Quintiles IMS Holdings to Be Added to S&P 500

Cramer: These Sectors Look Bullish (Part III)

Cramer: There Are Powerful Themes in Several Bull Markets