We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Here's Why It Is Wise to Hold Lamar Advertising (LAMR) Stock Now
Read MoreHide Full Article
Lamar Advertising Company (LAMR - Free Report) enjoys an impressive national footprint and is one of the leading providers of logo signs in the United States. The company’s diverse tenant base also bodes well. Additionally, it generates a significant part of revenues from local businesses, aiding stability in the top line.
Moreover, Lamar enjoys considerable market share in the U.S. outdoor advertising business and has made substantial efforts to upgrade the company’s portfolio in recent years, boosting occupancy in its existing advertising displays. The company ended third-quarter 2020 with 3,600 digital units, marking a rise of 58 units from the end of 2019.
However, the dent in advertising values due to the pandemic is a key pressing concern. Outdoor travel has taken a hit and subsequently, demand for Lamar’s services has been affected. There is a reduction in customer advertising expenditures. Though the situation is improving gradually and the company’s third-quarter performance was aided by higher-than-expected sales, any significant turnaround is unlikely in the near term given the current turbulence in the economy and related setbacks.
Also, the company’s high debt level is worrisome. Lamar’s total debt to total capital of 72.2% is high. Moreover, the pandemic-induced slowdown will likely continue denting top-line growth and hurt cash flow from operations. Besides, in August, Moody’s downgraded the company’s long-term rating as the rating agency believes that the outdoor advertising activities remain heavily dependent on consumer spending, which is expected to remain subdued for now.
Further, the Zacks Consensus Estimate for funds from operations (FFO) per share remained unchanged at $4.82 and $6.55 for 2020 and 2021, respectively, in the past month.
Alpine Income Property Trust, Inc.’s (PINE - Free Report) Zacks Consensus Estimate for the ongoing-year FFO per share moved 1.7% upward to $1.21 in the past month. The stock currently carries a Zacks Rank of 2 (Buy).
Arbor Realty Trust, Inc.’s (ABR - Free Report) FFO per share estimate for 2020 moved up 11.7% to $1.62 in the last month. The stock currently carries a Zacks Rank of 2.
CareTrust REIT, Inc.’s (CTRE - Free Report) Zacks Consensus Estimate for the current year’s FFO per share moved 1.5% north to $1.36 in a month’s time. The stock currently carries a Zacks Rank of 2.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
Image: Bigstock
Here's Why It Is Wise to Hold Lamar Advertising (LAMR) Stock Now
Lamar Advertising Company (LAMR - Free Report) enjoys an impressive national footprint and is one of the leading providers of logo signs in the United States. The company’s diverse tenant base also bodes well. Additionally, it generates a significant part of revenues from local businesses, aiding stability in the top line.
Moreover, Lamar enjoys considerable market share in the U.S. outdoor advertising business and has made substantial efforts to upgrade the company’s portfolio in recent years, boosting occupancy in its existing advertising displays. The company ended third-quarter 2020 with 3,600 digital units, marking a rise of 58 units from the end of 2019.
However, the dent in advertising values due to the pandemic is a key pressing concern. Outdoor travel has taken a hit and subsequently, demand for Lamar’s services has been affected. There is a reduction in customer advertising expenditures. Though the situation is improving gradually and the company’s third-quarter performance was aided by higher-than-expected sales, any significant turnaround is unlikely in the near term given the current turbulence in the economy and related setbacks.
Also, the company’s high debt level is worrisome. Lamar’s total debt to total capital of 72.2% is high. Moreover, the pandemic-induced slowdown will likely continue denting top-line growth and hurt cash flow from operations. Besides, in August, Moody’s downgraded the company’s long-term rating as the rating agency believes that the outdoor advertising activities remain heavily dependent on consumer spending, which is expected to remain subdued for now.
Further, the Zacks Consensus Estimate for funds from operations (FFO) per share remained unchanged at $4.82 and $6.55 for 2020 and 2021, respectively, in the past month.
Also, shares of this Zacks Rank #3 (Hold) company have lost 10.8% year to date compared with the 4.5% decline recorded by the industry. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stocks to Consider
Alpine Income Property Trust, Inc.’s (PINE - Free Report) Zacks Consensus Estimate for the ongoing-year FFO per share moved 1.7% upward to $1.21 in the past month. The stock currently carries a Zacks Rank of 2 (Buy).
Arbor Realty Trust, Inc.’s (ABR - Free Report) FFO per share estimate for 2020 moved up 11.7% to $1.62 in the last month. The stock currently carries a Zacks Rank of 2.
CareTrust REIT, Inc.’s (CTRE - Free Report) Zacks Consensus Estimate for the current year’s FFO per share moved 1.5% north to $1.36 in a month’s time. The stock currently carries a Zacks Rank of 2.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>