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Key Reasons to Add OUTFRONT Media Stock to Your Portfolio Now

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Key Takeaways

  • OUTFRONT Media's vast U.S. presence and diverse industry exposure help stabilize its revenue base.
  • The company's $8.5M in 2025 and $19.5M in 2024 acquisitions expand assets and growth prospects.
  • Digital billboard and transit display upgrades enhance revenues and advertiser engagement opportunities.

OUTFRONT Media’s (OUT - Free Report) diversified portfolio, both geographical and industry-wise, strategic buyouts and digital billboard conversions augur well for long-term growth. Moreover, the company's focus on technology advancements and industry tailwinds provides additional impetus.

The Zacks Consensus Estimate for its 2025 funds from operations (FFO) per share stands at $1.89, indicating an increase of 5% year over year. For 2026, the same stands at $2.04, implying a growth of 7.5% year over year.

Over the past six months, shares of this Zacks Rank #2 (Buy) company have rallied 19.8% compared with the industry's gain of 6.3%. Given the strength of its fundamentals, this stock seems to have additional room for growth.

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Factors That Make OUTFRONT Media Stock a Solid Pick

Portfolio Diversification: 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.

This out-of-home (OOH) advertising company provides communication and advertising services to a wide array of industries like healthcare/pharmaceuticals, retail, professional services and several transit authorities.

Hence, the company’s large-scale presence and diversified portfolio with respect to geography and industry make its revenues less volatile.

Acquisitions: OUTFRONT Media has also capitalized on acquisitions to enhance its portfolio. In the first half of 2025, the company acquired several assets for approximately $8.5 million. In 2024, OUT acquired several assets for approximately $19.5 million. With such expansion efforts, the company remains poised to grow over the long term.

Focus on Digital Billboards: OUTFRONT Media has been making efforts to convert its business from traditional static billboard advertising to digital displays. This is helping expand the number of new advertising relationships, in turn, providing scope to boost digital revenues.

Its total digital billboard displays reached 1,869 at the end of the second quarter of 2025. Moreover, it has been making investments in its digital transit portfolio. Its total digital transit displays reached 29,385 at the end of the second quarter of 2025.

Such expansion efforts in new assets and technology are likely to drive the company’s revenues and operating income before depreciation and amortization (OIBDA) growth in the upcoming period.

Industry Tailwinds: OUTFRONT Media operates in an industry that is characterized by high barriers to entry due to permitting restrictions. As there is a control on the permits, inventory as well as an intrusion from other market players, both local and national, are restricted. This helps support advertising rates. Hence, OUT remains well-poised to grow over the long term.

Moreover, the OOH advertisement space is also gaining traction as it has lower costs and better visibility in comparison to other forms of media.

Technological Advancement: In the upcoming years, higher technology investments are expected to provide further support to OOH advertising. Capitalizing on this, the company is expanding its footprint and providing unique technology platforms to marketers to tap into growth opportunities.

OUTFRONT Mobile Network offers advertisers additional data-analytic features and helps draw more audiences. In addition, the company’s digital platform offers real-time geolocation audience data to advertisers. This will help advertisers channel their funds efficiently to OUTFRONT Media’s assets and is anticipated to serve as a major growth driver.

Other Stocks to Consider

Some other top-ranked stocks from the REIT sector are Welltower (WELL - Free Report) and W.P. Carey (WPC - Free Report) , each carrying a Zacks Rank #2 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 2 cents northward to $5.10 over the past month.

The Zacks Consensus Estimate for WPC’s 2025 FFO per share has moved marginally upward to $4.91 over the past week.

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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