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 0.7%. By the end of trading, SBA Communications fell $1.22 (-1.6%) to $74.96 on average volume. Throughout the day, 1,854,428 shares of SBA Communications exchanged hands as compared to its average daily volume of 1,507,900 shares. The stock ranged in price between $74.79-$76.92 after having opened the day at $76.21 as compared to the previous trading day's close of $76.18. Other companies within the Diversified Services industry that declined today were: UniTek Global Services ( UNTK), down 9.6%, ENGlobal Corporation ( ENG), down 6.5%, Luna Innovations ( LUNA), down 6.4% and HMS Holdings Corporation ( HMSY), down 6.3%.
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SBA Communications Corporation owns and operates wireless communications towers in the United States, Canada, Costa Rica, El Salvador, Guatemala, Nicaragua, Panama, and Brazil. SBA Communications has a market cap of $9.7 billion and is part of the services sector. Shares are up 7.3% year to date as of the close of trading on Friday. Currently there are 10 analysts that rate SBA Communications a buy, no analysts rate it a sell, and 1 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 find that the company has favored debt over equity in the management of its balance sheet.

On the positive front, DLH Holdings ( DLHC), down 11.8%, Green Dot ( GDOT), down 10.1%, Willdan Group ( WLDN), down 9.8% and General Employment ( JOB), down 9.1% , were all gainers within the diversified services industry with Hertz Global Holdings ( HTZ) 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).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

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