Wells Fargo’s Best Growth Stocks: 28 Stocks With The Highest Consensus EPS Growth Estimates

15. SBA Communications Corporation (NASDAQ:SBAC)

Consensus Long-Term EPS Growth Estimate: 16%

Number of Hedge Fund Holders: 45

SBA Communications Corporation (NASDAQ:SBAC) is a real estate investment trust whose properties are geared towards catering to the needs of the communications sector. The dependence on communications properties hasn’t boded well for the firm in 2024 as the shares are down 13% year to date. Investor pessimism surrounding SBA Communications Corporation (NASDAQ:SBAC)’s shares is due to two primary factors. Firstly, high interest rates tend to depress real estate stocks as a whole. However, while other REITs, such as those exposed to data centers, have managed to weather the storm, SBA Communications Corporation (NASDAQ:SBAC)’s primary customers are equally sensitive to high rates. Telecommunications firms typically expand their operating footprint and tower count when cheap money is available. Teleco spending also depends on consumer spending, which hasn’t fared well in 2024. However, SBA Communications Corporation (NASDAQ:SBAC)’s considerable resources, as evidenced by $6.2 billion in net property, plant, and equipment positions it well to benefit from any recovery in its industry.

ClearBridge Investments mentioned SBA Communications Corporation (NASDAQ:SBAC) in its Q3 2024 investor letter. Here is what the fund said:

“We initiated a new position in SBA Communications Corporation (NASDAQ:SBAC), in the real estate sector. SBA is a leading owner and operator of wireless communications infrastructure, including cellular towers. We believe consistent growth in demand for cellular data and devices allows the company greater pricing power and high levels of customer retention. Additionally, while investment in telecommunication infrastructure has been subdued recently, we believe continued rollout of 5G devices will result in a rebound in customer spending over the long term.”