Goldman Sachs’ List Of Stocks Popular With Mutual Fund Managers: Top 20 Stocks

18. SBA Communications Corporation (NASDAQ:SBAC)

Number of  Mutual Funds: 17

Number of Hedge Fund Investors in Q2 2024: 45

SBA Communications Corporation (NASDAQ:SBAC) is a specialty real estate investment trust that focuses on owning and operating communications properties. Its shares are down 7% year to date which is unsurprising given the impact of high interest rates on real estate stocks and the turbulence in the telecommunications industry. Carriers typically expand their networks when rates are low since expansion requires them to generate vast sums of capital before the towers can be brought online to provide services and generate revenue. Similarly, REITs like SBA Communications Corporation (NASDAQ:SBAC) rely on debt to finance their portfolio. Telecom activity is also influenced by consumer spending, and these three factors combined have impacted SBA Communications Corporation (NASDAQ:SBAC)’s stock. As a result, while in the short term the stock remains depressed, a solid foundational base as evidenced by $6.2 billion in net property, plant, and equipment sets up the firm well to capitalize on an uptick in telecom spending. Additionally, an international presence means that a stronger dollar also reduces SBA Communications Corporation (NASDAQ:SBAC)’s revenue. Analyzing its finances, during H1 2024, while its International leasing revenue grew by $3.3 million on a constant currency basis, on an adjusted basis it dropped by $1.8 million.

Carillon Tower Advisors mentioned SBA Communications Corporation (NASDAQ:SBAC) in its Q2 2024 investor letter. Here is what the fund said:

“SBA Communications operates as a real estate investment trust (REIT) with a focus on wireless communications infrastructure. The company continues to face revenue headwinds due to a leading wireless provider decommissioning surplus towers following its merger with another provider. This strategic move has adversely impacted the outlook of SBA Communications’ future financial performance. We have sold the stock.”