Lamar Advertising (LAMR Quick QuoteLAMR - Free Report) shares soared 6.1% in the last trading session to close at $91.20. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 1% gain over the past four weeks.

This increased optimism can be attributed to Lamar Advertising’s better-than-expected fourth-quarter 2020 result as revenues did not fall as projected. The recovery in national advertising was a tailwind. Also, the company benefited from its cost-cutting efforts. The market is also upbeat about the broader outlook for the advertising industry.

Price and Consensus

This outdoor and transit advertising company is expected to post quarterly funds from operations (FFO) of $1.17 per share in its upcoming report, which represents a year-over-year change of +4.5%. Revenues are expected to be $357.78 million, down 12% from the year-ago quarter.

FFO and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in FFO estimate revisions are strongly correlated with near-term stock price movements.

For Lamar, the consensus FFO per share estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in FFO estimate revisions. So, make sure to keep an eye on LAMR going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank 3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>