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Here's Why Investors Should Buy OUTFRONT Media (OUT) Now
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A well-diversified portfolio of advertising sites, both geographical and industry-wise, in the key markets of the United States and Canada, coupled with digital-billboard conversions and a low-cost, out-of-home (OOH) advertising platform position OUTFRONT Media (OUT - Free Report) well for growth.
OUT’s large-scale presence paves the way for its clients to reach a national audience and provides the flexibility to tailor campaigns to specific regions or markets.
Moreover, with the easing of pandemic-related restrictions, the advertising environment is rebounding. This is likely to drive the company’s performance in the forthcoming quarters.
Moving on, the OOH medium is comparatively less costly than the other media alternatives. This has been a key factor as to why the OOH advertising space is gaining traction and continues to increase its market share compared to other forms of media.
In the years to come, higher technology investments are expected to provide further support to OOH advertising. As part of its efforts to capitalize on this trend, OUTFRONT Media has been expanding its footprint and providing unique technology platforms such as OUTFRONT Mobile Network to offer advertisers additional data-analytic features and help draw more audiences.
OUTFRONT Media has also been making efforts to convert its business from traditional static-billboard advertising to digital displays and has made strategic investments in its digital-billboard portfolio over the years. This has helped the company expand the number of new advertising relationships, providing scope to boost its digital revenues.
At the end of second-quarter 2022, its total digital-billboard displays reached 1,770, increasing from 1,665 at the end of first-quarter 2022 and 1,638 at the end of 2021. Additionally, the company built or converted 54 digital billboard displays in the United States in the first half of 2022. The numbers reflect that OUT’s efforts have paid off well, and the trend is likely to continue in the upcoming quarters.
OUT’s current cash flow growth is projected to increase significantly compared with the 9.64% growth estimated for the industry. Additionally, its trailing 12-month return on equity (ROE) is 13.87% compared with the industry’s average of 3.60%. This reflects that the company is more efficient in using shareholders’ funds than its peers.
Further, the funds from operations (FFO) per share is expected to be up 48.57% for 2022 compared with the industry’s average of 9.82%.
Analysts, too, seem bullish on this Zacks Rank #1 (Strong Buy) stock. The Zacks Consensus Estimate for the company’s 2022 FFO indicates a favorable outlook as it has increased 2.5% in the past two months to $2.05.
Shares of OUTFRONT Media have only lost 0.2% in the past three months compared with its industry’s decline of 16.6%.
Image Source: Zacks Investment Research
Other Stocks to Consider
Some other top-ranked stocks from the REIT sector are Extra Space Storage (EXR - Free Report) , Life Storage and Xenia Hotels & Resorts (XHR - Free Report) .
The Zacks Consensus Estimate for Extra Space Storage’s ongoing year’s FFO per share has been raised marginally over the past month to $2.05. EXR presently carries a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for Life Storage’s current-year FFO per share has moved 3.6% northward in the past two months to $6.39. LSI sports a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Xenia Hotels & Resorts’ 2022 FFO per share has moved 7.4% upward in the past two months to $1.59. XHR currently holds a Zacks Rank of 1.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
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Here's Why Investors Should Buy OUTFRONT Media (OUT) Now
A well-diversified portfolio of advertising sites, both geographical and industry-wise, in the key markets of the United States and Canada, coupled with digital-billboard conversions and a low-cost, out-of-home (OOH) advertising platform position OUTFRONT Media (OUT - Free Report) well for growth.
OUT’s large-scale presence paves the way for its clients to reach a national audience and provides the flexibility to tailor campaigns to specific regions or markets.
Moreover, with the easing of pandemic-related restrictions, the advertising environment is rebounding. This is likely to drive the company’s performance in the forthcoming quarters.
Moving on, the OOH medium is comparatively less costly than the other media alternatives. This has been a key factor as to why the OOH advertising space is gaining traction and continues to increase its market share compared to other forms of media.
In the years to come, higher technology investments are expected to provide further support to OOH advertising. As part of its efforts to capitalize on this trend, OUTFRONT Media has been expanding its footprint and providing unique technology platforms such as OUTFRONT Mobile Network to offer advertisers additional data-analytic features and help draw more audiences.
OUTFRONT Media has also been making efforts to convert its business from traditional static-billboard advertising to digital displays and has made strategic investments in its digital-billboard portfolio over the years. This has helped the company expand the number of new advertising relationships, providing scope to boost its digital revenues.
At the end of second-quarter 2022, its total digital-billboard displays reached 1,770, increasing from 1,665 at the end of first-quarter 2022 and 1,638 at the end of 2021. Additionally, the company built or converted 54 digital billboard displays in the United States in the first half of 2022. The numbers reflect that OUT’s efforts have paid off well, and the trend is likely to continue in the upcoming quarters.
OUT’s current cash flow growth is projected to increase significantly compared with the 9.64% growth estimated for the industry. Additionally, its trailing 12-month return on equity (ROE) is 13.87% compared with the industry’s average of 3.60%. This reflects that the company is more efficient in using shareholders’ funds than its peers.
Further, the funds from operations (FFO) per share is expected to be up 48.57% for 2022 compared with the industry’s average of 9.82%.
Analysts, too, seem bullish on this Zacks Rank #1 (Strong Buy) stock. The Zacks Consensus Estimate for the company’s 2022 FFO indicates a favorable outlook as it has increased 2.5% in the past two months to $2.05.
Shares of OUTFRONT Media have only lost 0.2% in the past three months compared with its industry’s decline of 16.6%.
Image Source: Zacks Investment Research
Other Stocks to Consider
Some other top-ranked stocks from the REIT sector are Extra Space Storage (EXR - Free Report) , Life Storage and Xenia Hotels & Resorts (XHR - Free Report) .
The Zacks Consensus Estimate for Extra Space Storage’s ongoing year’s FFO per share has been raised marginally over the past month to $2.05. EXR presently carries a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for Life Storage’s current-year FFO per share has moved 3.6% northward in the past two months to $6.39. LSI sports a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Xenia Hotels & Resorts’ 2022 FFO per share has moved 7.4% upward in the past two months to $1.59. XHR currently holds a Zacks Rank of 1.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.