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OUTFRONT Media Stock Up 11.2% in 3 Months: Will It Continue to Rise?
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Key Takeaways
OUT's diversified billboard portfolio fuels steady revenues despite market shifts.
The shift to digital displays and transit assets boosts new ad relationships and digital sales.
Recent $5.7M asset buyouts aim to enhance OUT's portfolio and long-term growth potential.
OUTFRONT Media (OUT - Free Report) shares have gained 11.2% in the past three months, outperforming the industry’s growth of 1.2%.
This New York-based advertising real estate investment trust (REIT) enjoys a diversified portfolio of advertising sites, both geographically and by industry, in some of the key markets of the United States.
Moreover, the company’s ongoing efforts to convert its business from traditional static billboard advertising to digital displays and strategic investments in the digital billboard portfolio support its digital revenue growth.
Image Source: Zacks Investment Research
Factors Behind OUT Stock Price Rise: Will This Trend Last?
OUTFRONT Media’s advertising sites are geographically diversified, with a presence across the largest markets in the United States. The large-scale presence enables its clients to reach a national audience and also provides the flexibility to tailor campaigns to specific regions or markets. It also offers services to various industries, including professional services, healthcare/pharmaceuticals and retail. Hence, the company’s large-scale presence and diversified portfolio, with respect to geography and industry, make its revenues less volatile.
OUTFRONT Media has been making efforts to convert its business from traditional static billboard advertising to digital displays, which are helping expand the number of new advertising relationships, in turn, providing scope to boost digital revenues. Moreover, it has also been making investments in its digital transit portfolio. Such expansion efforts in new assets and technology are likely to drive the company’s revenue and OIBDA growth in the upcoming period.
OUTFRONT Media is also focused on enhancing its portfolio quality via strategic acquisitions. In the first quarter of 2025, the company acquired several assets for approximately $5.7 million. With such expansion efforts, it remains well-poised to grow over the long term.
OOH advertising has been growing at a rapid pace and continues to increase its market share in comparison with other forms of media. The cost of advertising through this medium is also comparatively lower than other media. Moreover, fragmentation across other advertising media and technological advancements in the OOH segment are aiding the shift to outdoor advertising.
Key Risks for OUT
Fluctuations in advertising expenditures amid macroeconomic uncertainty are likely to affect its top-line growth. Competition from other advertising channels is likely to impact its pricing power.
The Zacks Consensus Estimate for VICI Properties’ 2025 FFO per share is pegged at $2.35, up 4% year over year.
The Zacks Consensus Estimate for W.P. Carey’s 2025 FFO per share stands at $4.88, up 3.8% year over year.
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.
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OUTFRONT Media Stock Up 11.2% in 3 Months: Will It Continue to Rise?
Key Takeaways
OUTFRONT Media (OUT - Free Report) shares have gained 11.2% in the past three months, outperforming the industry’s growth of 1.2%.
This New York-based advertising real estate investment trust (REIT) enjoys a diversified portfolio of advertising sites, both geographically and by industry, in some of the key markets of the United States.
Moreover, the company’s ongoing efforts to convert its business from traditional static billboard advertising to digital displays and strategic investments in the digital billboard portfolio support its digital revenue growth.
Image Source: Zacks Investment Research
Factors Behind OUT Stock Price Rise: Will This Trend Last?
OUTFRONT Media’s advertising sites are geographically diversified, with a presence across the largest markets in the United States. The large-scale presence enables its clients to reach a national audience and also provides the flexibility to tailor campaigns to specific regions or markets. It also offers services to various industries, including professional services, healthcare/pharmaceuticals and retail. Hence, the company’s large-scale presence and diversified portfolio, with respect to geography and industry, make its revenues less volatile.
OUTFRONT Media has been making efforts to convert its business from traditional static billboard advertising to digital displays, which are helping expand the number of new advertising relationships, in turn, providing scope to boost digital revenues. Moreover, it has also been making investments in its digital transit portfolio. Such expansion efforts in new assets and technology are likely to drive the company’s revenue and OIBDA growth in the upcoming period.
OUTFRONT Media is also focused on enhancing its portfolio quality via strategic acquisitions. In the first quarter of 2025, the company acquired several assets for approximately $5.7 million. With such expansion efforts, it remains well-poised to grow over the long term.
OOH advertising has been growing at a rapid pace and continues to increase its market share in comparison with other forms of media. The cost of advertising through this medium is also comparatively lower than other media. Moreover, fragmentation across other advertising media and technological advancements in the OOH segment are aiding the shift to outdoor advertising.
Key Risks for OUT
Fluctuations in advertising expenditures amid macroeconomic uncertainty are likely to affect its top-line growth. Competition from other advertising channels is likely to impact its pricing power.
Stocks to Consider
Some better-ranked stocks from the REIT sector are VICI Properties (VICI - Free Report) and W.P. Carey (WPC - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for VICI Properties’ 2025 FFO per share is pegged at $2.35, up 4% year over year.
The Zacks Consensus Estimate for W.P. Carey’s 2025 FFO per share stands at $4.88, up 3.8% year over year.
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.