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OUTFRONT Media Stock Up 14.5% in 3 Months: Will the Trend Last?
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Key Takeaways
OUTFRONT Media stock has risen 14.5% in three months, while the industry declined 1.7%.
Q2 AFFO of $0.51 per share beat estimates, aided by transit growth and lower expenses.
Digital billboard conversions and $8.5M in acquisitions support long-term revenue growth.
OUTFRONT Media (OUT - Free Report) shares have gained 14.5% in the past three months against the industry’s decline of 1.7%.
This New York-based advertising real estate investment trust’s (REIT) diversified portfolio, both geographical and industry-wise, strategic buyouts and digital billboard conversions augur well for long-term growth.
Last month, the company reported second-quarter 2025 adjusted funds from operations (AFFO) per share of 51 cents, surpassing the Zacks Consensus Estimate of 46 cents. This compares favorably to the FFO of 50 cents a year ago.
Results reflected a decline in billboard revenues in the quarter, which affected year-over-year top-line growth. However, a rise in transit revenues, lower interest expenses and operating expenses supported the results to some extent.
Analysts seem optimistic about this Zacks Rank #3 (Hold) company. The Zacks Consensus Estimate for its 2025 FFO per share has moved northward by 1.6% over the past month to $1.88.
Image Source: Zacks Investment Research
Factors Behind OUT Stock Price Rise: Will This Continue?
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.
OUT 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, 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.
The company is also focused on enhancing its portfolio quality via strategic acquisitions. During the six months ended June 30, 2025, OUT acquired several assets for approximately $8.5 million. With such expansion efforts, it remains well-poised to grow over the long term.
OUTFRONT Media operates in an industry that is characterized by high barriers to entry due to permitting restrictions. This is because the company typically owns permits that allow OOH advertising at each location, and in fact, these permits are the most-prized assets of the company. However, as there is a control on the permits and inventory, an intrusion from other market players, both local and national, is restricted. This helps support advertising rates. Hence, this OOH advertising company remains well-poised to grow over the long term.
Key Risks for OUT
OUTFRONT Media’s revenues and operating results are sensitive to fluctuations in advertising expenditures, general economic conditions and other unexpected external events. Moreover, the company faces competition from other outdoor advertisers for customers, display locations and structures. This is anticipated to affect its pricing power in the market.
The Zacks Consensus Estimate for HST’s 2025 FFO per share is pegged at $1.95, suggesting a year-over-year decrease of 1%.
The consensus estimate for TRNO’s 2025 FFO per share stands at $2.61, indicating an increase of 7.9% 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 14.5% in 3 Months: Will the Trend Last?
Key Takeaways
OUTFRONT Media (OUT - Free Report) shares have gained 14.5% in the past three months against the industry’s decline of 1.7%.
This New York-based advertising real estate investment trust’s (REIT) diversified portfolio, both geographical and industry-wise, strategic buyouts and digital billboard conversions augur well for long-term growth.
Last month, the company reported second-quarter 2025 adjusted funds from operations (AFFO) per share of 51 cents, surpassing the Zacks Consensus Estimate of 46 cents. This compares favorably to the FFO of 50 cents a year ago.
Results reflected a decline in billboard revenues in the quarter, which affected year-over-year top-line growth. However, a rise in transit revenues, lower interest expenses and operating expenses supported the results to some extent.
Analysts seem optimistic about this Zacks Rank #3 (Hold) company. The Zacks Consensus Estimate for its 2025 FFO per share has moved northward by 1.6% over the past month to $1.88.
Image Source: Zacks Investment Research
Factors Behind OUT Stock Price Rise: Will This Continue?
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.
OUT 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, 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.
The company is also focused on enhancing its portfolio quality via strategic acquisitions. During the six months ended June 30, 2025, OUT acquired several assets for approximately $8.5 million. With such expansion efforts, it remains well-poised to grow over the long term.
OUTFRONT Media operates in an industry that is characterized by high barriers to entry due to permitting restrictions. This is because the company typically owns permits that allow OOH advertising at each location, and in fact, these permits are the most-prized assets of the company. However, as there is a control on the permits and inventory, an intrusion from other market players, both local and national, is restricted. This helps support advertising rates. Hence, this OOH advertising company remains well-poised to grow over the long term.
Key Risks for OUT
OUTFRONT Media’s revenues and operating results are sensitive to fluctuations in advertising expenditures, general economic conditions and other unexpected external events. Moreover, the company faces competition from other outdoor advertisers for customers, display locations and structures. This is anticipated to affect its pricing power in the market.
Stocks to Consider
Some better-ranked stocks from the broader REIT sector are Host Hotels & Resorts ((HST - Free Report) ) and Terreno Realty ((TRNO - 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 HST’s 2025 FFO per share is pegged at $1.95, suggesting a year-over-year decrease of 1%.
The consensus estimate for TRNO’s 2025 FFO per share stands at $2.61, indicating an increase of 7.9% 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.