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OUT Stock Rises 16.2% in 3 Months: Will it Continue to Rise?

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Key Takeaways

  • OUT shares rose 16.2% in three months, outpacing the industry's 1.3% decline.
  • Digital billboard investments and portfolio expansion are driving revenue and OIBDA growth.
  • Strategic acquisitions of millions in assets enhance OUT's quality and long-term growth prospects.

OUTFRONT Media (OUT - Free Report) shares have gained 16.2% in the past three months against the industry’s decline of 1.3%.

This New York-based real estate investment trust (REIT) enjoys a diversified portfolio of advertising sites 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.

Analysts seem optimistic about this Zacks Rank #3 (Hold) company. The Zacks Consensus Estimate for its 2025 FFO per share has moved a cent northward over the past month to $1.89.

 

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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.

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 Welltower (WELL - Free Report) and Plymouth Industrial REIT (PLYM - 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 WELL’s 2025 FFO per share has moved a cent northward to $5.07 over the past month.

The Zacks Consensus Estimate for PLYM’s 2025 FFO per share has moved 2 cents upward to $1.88 over the past two months.

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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