close icon

SBAC Stock to Reach New High Before Bears Show Up

SBA Communications is a real estate investment trust, providing wireless communications infrastructure to companies like Verizon and AT&T. SBAC went public in mid-1999, only to participate in the final months of the dot-com bubble before it all came crashing down.

The stock exceeded $57 a share in the summer of 2000. By late-2002, it could be bought for less than a dollar. Fortunately, the company survived. What followed was one of the best growth stories investors could possibly imagine. Nearly two decades later now, SBAC is hovering around $274 after reaching $328 in September, 2020.

Is this 16% pullback a buying opportunity and what is left of SBA’s uptrend? Let’s see if applying the Elliott Wave principle to the chart below can help us answer these questions.

SBAC Stock aiming for $350 before the bears return

The wave count starts from the dot-com bust lows in 2002. The surge investors have been enjoying over the past 19 years can be seen as a five-wave impulse with a missing fifth wave. The pattern is labeled I-II-III-IV-V, where wave III, as it usually happens, is much longer than wave I.

Approaching $400, SBAC Stock Bulls Face Major Elliott Wave Resistance

The five sub-waves of waves III and 3 of III are also visible and marked 1-2-3-4-5 and i-ii-iii-iv-v, respectively. According to this count, last year’s coronavirus selloff fits into the position of wave 4 of III. The following all-time high marks the end of wave 5 of III, which means the current dip must be wave IV.

If the analysis so far is correct, the bulls are about to make one last push to a new record in wave V. Unfortunately for them, the theory states that a three-wave correction follows every impulse. A bearish reversal between $350 and $400 followed by a decline to the 2020 lows near $200 would make sense.

From a purely valuation standpoint, SBAC’s 2021 P/FFO of 30 makes both $400 and $200 plausible targets. Investors should simply not get too carried away when the first one is reached. The drop to the second one would be unnecessarily painful.

Similar Elliott Wave setups occur in the Forex, crypto and commodity markets, as well. Our Elliott Wave Video Course can teach you how to uncover them yourself!



Stay informed with our newsletter

Latest Elliott Wave analysis on different topics delivered to you weekly.

Privacy policy
You may also like:

Apple Dips – Opportunity or Something Else?

Apple needs no introduction. It is the biggest, most profitable company in the world and the top holding in Warren Buffett’s Berkshire Hathaway portfolio. And indeed, breaking sales and earnings records quarter after quarter at such a huge scale means Apple really is a great business. But after reaching an all-time high of $145.09 on…

Read More »

Time to Play It Safe in Goldman Sachs Stock

Goldman Sachs is trading at record highs around $330 a share. Increased market volatility helped the bank’s trading division save the day in 2020. Unlike most of its main competitors, GS actually earned a higher profit last year compared to 2019. During the coronavirus selloff, Goldman Sachs stock dipped below $131 a share. Investors who…

Read More »

HZNP Stock Blows Past All Expectations. Now What?

We first covered Horizon Therapeutics, then Horizon Pharma, in September 2016. The stock was trading around $18 a share after a decline from the vicinity of $40. However, we didn’t think it was time to buy. The structure of the preceding rally ending in mid-2015 was impulsive and we thought the bears were not done…

Read More »

AZPN Stock Too Expensive for Its Own Good

Exceptional margins and returns on assets and equity make the surge in Aspen Technology shares easy to understand. AZPN stock exceeded $162 a share last week, up 122% from last year’s low at $73. On the other hand, the software company is expected to earn $5 a share in this fiscal year. This means the…

Read More »

Amerco Stock Carries Very High Risks Above $500

Amerco is a $10B moving and storage operations and insurance provider. The company is founded in 1945 and went public in the mid-1990s. The stock trades under the symbol UHAL and is currently hovering at all-time highs above $500 a share. The recovery from March 2020 was especially rewarding with Amerco stock rising 125% in…

Read More »

Anthem Stock Completes a Pattern it Started in 2001

With a market cap of $72B and 2020 sales of $122B, Anthem Inc. is one of the largest life, hospital and medical insurance providers in the U.S. The company went public in October 2001 and is one of not too many firms never to trade below its IPO price. Nearly twenty years ago, the stock…

Read More »

AJG Stock to Lose Half as Post-2009 Uptrend Ends

The pandemic disruptions hardly put a dent in Arthur J. Gallagher’s business. Despite slightly lower revenues, one of the largest insurance brokers in the world achieved its highest profit ever in 2020. As a result, AJG stock climbed to a new all-time high of $129 in December. Currently hovering around $116, the stock still looks…

Read More »

More analyses