SBA Communications’ SBAC shares have rallied 14.8% in the past three months compared with the industry’s growth of 10.3%.
The company benefits from rising wireless data demand through long-term tower leasing, steady colocation activity, strategic tower expansion and site acquisitions, complemented by site development services and consistent dividend growth, supporting long-term shareholder value.
Analysts seem bullish on this Zacks Rank #3 (Hold) stock. The Zacks Consensus Estimate for its 2026 AFFO per share has been revised northward by 6 cents to $12.20 over the past two months.
Image Source: Zacks Investment Research
Factors Behind SBAC Stock’s Price Surge
Mobile data usage continues to rise as carriers expand coverage, densify networks and upgrade sites with additional spectrum bands and technologies such as C-band and massive MIMO antennas. Fixed wireless access growth adds load to carrier networks and supports additional equipment needs at existing macro sites. This activity underpins demand for SBA Communications’ tower infrastructure across the United States and its international markets in Central America, South America and Africa.
SBA Communications generates most of its revenues from long-term tower leases, which support visibility in cash flows and high tower cash flow margins. In the first quarter of 2026, U.S. leasing activity was driven largely by new colocations as wireless carriers added capacity. Management expects healthy leasing activity to continue through the remainder of 2026, supported by an increasing domestic leasing backlog.
SBA Communications provides site development services in the United States, helping carriers with site acquisition, zoning, construction and equipment installation. The segment also offers installation, optimization and integration services across network technologies. While site development is a smaller contributor to operating profit than site leasing, it deepens customer relationships and helps the company participate in network build cycles beyond pure colocation.
SBA Communications continues to expand its footprint through selective acquisitions, land purchases and new tower builds in markets where carrier demand supports returns. As of March 31, 2026, the company owned or operated 46,358 communication sites. In the first quarter of 2026, it acquired 10 communication sites and the rights to the land underneath about 3,900 communication sites in Guatemala for $133 million, and built 80 towers. Subsequent to quarter-end, the company purchased or is under contract to purchase 56 sites for $36.9 million in cash, with the transactions expected to close by the end of the third quarter of 2026.
SBA Communications’ dividend hikes demonstrate its commitment to driving shareholder value and superior capital-distribution ability. The company has increased its dividend five times in the past five years, and its five-year annualized dividend growth rate is 17.06%. Given SBA Communications’ solid operating platform, the dividend distribution is expected to be sustainable over the long run.
Key Concerns for SBAC
Customer concentration, Sprint and EchoStar churn, leverage, interest expenses, currency fluctuations and technology shifts can limit SBA Communications near-term growth and valuation.
Stocks to Consider
Some better-ranked stocks from the broader REIT sector are Lamar Advertising LAMR and Vornado Realty Trust VNO, each carrying a Zacks Rank of 2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for LAMR’s 2026 FFO per share is pegged at $8.81, which indicates year-over-year growth of 6.66%.
The Zacks Consensus Estimate for VNO’s full-year FFO per share is pinned at $2.34, which calls for an increase of 0.86% from the year-ago period.
Note: Anything related to earnings presented in this write-up represents FFO, a widely used metric to gauge the performance of REITs.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.7% per year. So be sure to give these hand picked 7 your immediate attention.
See them now >>SBA Communications Corporation (SBAC) : Free Stock Analysis Report
Vornado Realty Trust (VNO) : Free Stock Analysis Report
Lamar Advertising Company (LAMR) : Free Stock Analysis Report
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.
