4 Reasons Why You Should Add SBAC Stock to Your Portfolio Now

Core Insights - SBA Communications (SBAC) is well-positioned to benefit from the high capital spending by wireless carriers for network expansion due to the growth in mobile data usage [1] - The company has a resilient business model supported by long-term leases, ensuring stable revenues [5] Market Performance - Over the past three months, SBAC shares have declined by 4.3%, while the industry has seen a smaller decline of 0.7% [2] - Analysts maintain a positive outlook on SBAC, reflected in its Zacks Rank of 2 (Buy) [2] Financial Estimates - The Zacks Consensus Estimate for SBAC's funds from operations (FFO) per share for 2025 and 2026 has increased by 2.2% and 3.3%, reaching $12.89 and $12.86 respectively [3] Demand Drivers - The rapid advancement in mobile technology and the increase in data-heavy applications are driving global growth in mobile data usage, which benefits SBA Communications [4] - Rising smartphone penetration and the rollout of 5G networks are pushing wireless carriers to upgrade their infrastructure, increasing demand for SBA's services [4] Business Model Strength - SBA Communications generates most of its revenue from long-term tower leases, typically ranging from 5 to 15 years, which provides high operating margins [5] - The company continues to see demand for additional antenna space on its towers as network usage increases [5] Revenue Growth Expectations - Management anticipates core leasing revenues to rise in both domestic and international segments in 2025 compared to 2024, on a currency-neutral basis [6] Portfolio Expansion - In the third quarter, SBA Communications acquired 447 communication sites for $142.8 million and built 151 new towers [9] - The company is under contract to purchase an additional 78 communication sites for $66.9 million, expected to close by the end of Q1 2026 [10] Dividend Policy - SBA Communications has increased its dividend five times in the last five years, with a five-year annualized growth rate of 18.52% [11] - The company's solid operating platform and lower-than-industry dividend payout rate suggest that dividend distributions will remain sustainable [11]