Back to top

Analyst Blog

Shares of Clear Channel Outdoor Holdings Inc hit a 52-week high of $10.54 during yesterday’s trading session. However, the stock closed the session at $8.45, which reflects a solid year-to-date return of 59.6%. The average trading volume of the stock aggregated 125,218 shares.

Despite its strong price appreciation, this Zacks Rank #3 (Hold) stock still has enough fundamentals that may further drive the stock upward. Investors remain upbeat as the company continues to bring new advertising opportunities to the market and aims to expand its business relationships with new advertisers.

Growth Drivers

Focused expansion into emerging markets, new business relationships with advertisers and financial flexibility are the primary driving factors for Clear Channel.

Clear Channel is one of the largest outdoor advertising companies in the world with displays spread across 40 countries worldwide. The company aims to use innovative advertising concepts to expand its reach to consumers.

In addition, Clear Channel is concentrating on strengthening its business and expanding its client base globally and has already started to invest in and grow national and local sales platforms in radio. There is incredible innovation in the out-of-home advertising sector to reach mobile consumers. At the same time the company is taking adequate steps for increased digital investments.

Also, the company maintains a sound and flexible balance sheet with ample liquidity that enables it to capitalize on potential business deals to fuel its top-line growth.

Estimate Revisions

Over the last 30 days, four out of five earnings estimates were revised up for 2013, while none revised it downward. For 2014, earnings estimate revisions were fairly balanced with two upward and two downward revisions.

Other Stocks to Consider

Clear Channel currently has a Zacks Rank #3 (Hold). Other stocks worth considering in the industry include Stantec Inc and CoreLogic, Inc holding a Zacks Rank #1 (Strong Buy), and YuMe, Inc. , holding a Zacks Rank #2 (Buy).

 

Please login to Zacks.com or register to post a comment.