OUT Stock Up Nearly 20% This Year: Will the Momentum Last?

OUTFRONT Media OUT shares have gained 19.5% year-to-date, compared with the industry’s growth of 4.9%.

This New York-based 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.

Early this month, this Zacks Rank #3 (Hold) REIT reported third-quarter 2025 adjusted funds from operations (AFFO) per share of 57 cents, surpassing the Zacks Consensus Estimate of 50 cents. This compares to the FFO of 49 cents in the prior-year period.

Results reflected a rise in transit revenues, led by an increase in average revenue per display (yield) and a higher adjusted OIBDA margin. However, a decline in billboard revenues affected the growth tempo to some extent.

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. Its total digital billboard displays reached 1,906 at the end of the third quarter of 2025. Moreover, it has also been making investments in its digital transit portfolio. Its total digital transit displays reached 29,452 at the end of the third quarter of 2025. Such expansion efforts in new assets and technology are likely to drive the company’s revenue and OIBDA growth in the upcoming period.

OUT is also focused on enhancing its portfolio quality via strategic acquisitions. In the first nine months of 2025, the company acquired several assets for approximately $10.4 million. With such expansion efforts, it remains well-poised to grow over the long term.

The out-of-home (OOH) advertising has been growing at a rapid pace and continues to increase its market share in comparison with other forms of media. Importantly, the cost of advertisement 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. In the upcoming years, higher technology investments are expected to provide further support to OOH advertising. Recently, OUTFRONT Media partnered with Amazon Web Services (AWS) to modernize OOH planning and buying through AI-enabled workflows.

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 Cousins Properties CUZ and Digital Realty Trust DLR, 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 CUZ’s 2025 FFO per share is pinned at $2.83, indicating year-over-year growth of 5.2%.

The Zacks Consensus Estimate for DLR’s 2025 FFO per share stands at $7.35, calling for an increase of 9.5% from the year-ago reported figure.

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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This article originally published on Zacks Investment Research (zacks.com).

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