On Friday, SBA Communications ( SBAC ) reached an important technical milestone, with its Relative Strength ( RS ) Rating entering into the 80-plus percentile with an improvement to 83, a rise from 79 the day before.
[ibd-display-video id=2385970 width=50 float=left autostart=true] IBD's proprietary RS Rating identifies market leadership by using a 1 (worst) to 99 (best) score that indicates how a stock's price action over the last 52 weeks matches up against the rest of the market.
Decades of market research shows that the best stocks typically have an RS Rating of at least 80 as they begin their biggest price moves.
SBA Communications broke out earlier, but is now about 3% below the prior 174.07 entry from a cup without handle . If a stock you're tracking breaks past a buy point then falls 7% or more below the original entry price, it's considered a failed base. It's best to wait for the stock to form a new base and breakout. Also keep in mind that the latest consolidation is a later-stage base, and such bases are more prone to failure.
While earnings growth dropped in the company's most recently reported quarter from 17% to 14%, the top line grew 6%, up from 5% in the previous report. The company is expected to report its latest numbers on or around Feb. 27.
The company earns the No. 5 rank among its peers in the Telecom Services-Wireless industry group. Boingo Wireless ( WIFI ) is the top-ranked stock within the group.
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