Lamar Advertising Stock Gains 18.4% in 3 Months: Will the Trend Last?

Lamar Advertising LAMR shares have risen 18.4% in the past three months compared with its industry’s growth of 10.1%.The company’s impressive footprint of outdoor advertising assets across the United States and Canada positions it well to ride the growth curve. An unmatched logo signs business and a diversified tenant base across various sectors assure stable revenues.Moreover, efforts to expand the digital platform through acquisitions and technological advancements in the low-cost, out-of-home (OOH) advertising platform bode well for long-term growth.Analysts seem optimistic about this Zacks Rank #3 (Hold) company. The Zacks Consensus Estimate for its 2025 FFO per share has moved northward by 1.2% over the past two months to $8.29.Image Source: Zacks Investment ResearchFactors Behind LAMR Stock Price Rise: Will This Continue?Lamar is one of the largest owners and operators of outdoor advertising structures in the United States. It enjoys an impressive national footprint and holds a leading position as a provider of logo signs in the United States. It enjoys a diversified tenant base, comprising tenants from the services, health care, restaurants, retailers, automotive, insurance and gaming categories. Lamar also sources a significant part of its revenues from local businesses with a diversified base of tenants. This generally leads to less volatility in revenues.OOH advertising has been growing at a rapid pace and continues to increase its market share compared to other forms of media. In the upcoming years, higher technology investments are expected to provide further support to OOH advertising. Therefore, the company’s expansion activities over the recent years bode well for long-term growth. In the first quarter of 2025, Lamar completed 10 acquisitions worth $22.1 million. With such expansion efforts, it is poised to ride the growth curve.Moreover, the company's increased focus on bolstering its digital capabilities augurs well for long-term growth. LAMR has added a large number of digital screens through acquisitions and internal conversions over the past several years. It offers customers the largest network of digital billboards in the United States, with around 5,100 displays as of the end of the first quarter of 2025.Solid dividend payouts remain the biggest attraction for REIT investors, and Lamar has been committed to the same. In the last five years, the company has raised its dividend eight times. Its five-year annualized dividend growth rate is 24.17%, which is encouraging. Such efforts raise investors’ optimism about the stock.Moreover, the company’s share repurchases also demonstrate its commitment to driving shareholder value.  Lamar has repurchased common stock for an aggregate value of $150 million year to date. On May 15, 2025, the company’s board of directors approved an additional amount of $150 million, bringing the total amount remaining to be repurchased to $250 million under the program. Such efforts raise investors’ confidence and optimism in the stock.Key Risks for Lamar AdvertisingA slowdown in national ad spend and competition from other outdoor advertisers and other forms of media are major concerns for Lamar. The high debt burden acts as a deterrent for the company.Stocks to ConsiderSome better-ranked stocks from the broader REIT sector are VICI Properties VICI and W.P. Carey WPC, 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 FFO, a widely used metric to gauge the performance of REITs.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.5% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Lamar Advertising Company (LAMR): Free Stock Analysis Report W.P. Carey Inc. (WPC): Free Stock Analysis Report VICI Properties Inc. (VICI): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks