SBA Communications (SBAC) shares rallied 18.9% in the last trading session to close at $204.04. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 12.7% loss over the past four weeks.
The increased investor optimism in the stock can be attributed to a Bloomberg news, which reported that SBA Communications has received preliminary takeover interest from large infrastructure funds. The company is now working with advisors to assess the offer, but negotiations remain in early phases with no guaranteed deal.
This communications tower operator is expected to post quarterly funds from operations (FFO) of $2.84 per share in its upcoming report, which represents a year-over-year change of -10.1%. Revenues are expected to be $702.36 million, up 5.7% from the year-ago quarter.
FFO and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in FFO estimate revisions are strongly correlated with near-term stock price movements.
For SBA Communications, the consensus estimate for FFO per share for the quarter has been revised 0.8% higher over the last 30 days to the current level. And a positive trend in FFO estimate revision usually translates into price appreciation. So, make sure to keep an eye on SBAC going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
SBA Communications is a member of the Zacks REIT and Equity Trust - Other industry. One other stock in the same industry, Lamar Advertising LAMR, finished the last trading session 1.3% higher at $127.64. LAMR has returned -9.4% over the past month.
Lamar's consensus estimate for FFO per share for the upcoming report has remained unchanged over the past month at $1.57. Compared to the company's year-ago FFO per share, this represents a change of -1.9%. Lamar currently boasts a Zacks Rank of #4 (Sell).
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
