Lamar Advertising Stock Gains 8.8% in 3 Months: Will the Trend Last?

Lamar Advertising LAMR shares have risen 8.8% in the past three months compared with the industry’s growth of 1.4%.

Lamar holds a significant market share in the U.S. outdoor advertising business. Its diversified tenant base, opportunistic acquisitions and efforts to upgrade its portfolio are key growth drivers.

Analysts seem optimistic about this Zacks Rank #3 (Hold) company. The Zacks Consensus Estimate for its 2025 FFO per share has moved northward marginally over the past month to $8.19. The same for 2026 FFO per share has been revised up by 1% to $8.83 over the past month.

Factors Behind LAMR Stock Price Rise: Will This Continue?

Lamar is among the largest owners and operators of outdoor advertising structures in the United States, with a strong nationwide presence. The company holds a leading position in logo signs and benefits from a well-diversified tenant base spanning services, healthcare, restaurants, retail, automotive, insurance and gaming. A significant portion of Lamar’s revenue is generated from local businesses, which further diversifies its tenant mix and helps reduce revenue volatility.

The company's increased focus on bolstering its digital capabilities augurs well for long-term growth. Particularly, the growing digital platform allows Lamar to tap into expanding programmatic advertising channels. The company 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 more than 5,400 displays as of the end of the third quarter of 2025.

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. 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. Therefore, the company’s expansion activities over the recent years bode well for long-term growth. During the first nine months of 2025, Lamar completed more than 30 acquisitions for a total cash purchase price of approximately $133.9 million.

Lamar operates in an industry that is characterized by high barriers to entry due to permitting restrictions. Moreover, as there is a control on the permits, inventory as well as an intrusion from other market players, both local and national, are restricted. Hence, this provides the company with a solid competitive edge.

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 nine times. Its five-year annualized dividend growth rate is 13.94%, which is encouraging. Such efforts raise investors’ optimism about the stock.

Key Risks for Lamar Advertising

The uncertain macroeconomic situation and competition from other outdoor advertisers and other forms of media are major concerns for Lamar. High debt burden acts as a deterrent for the company.

Stocks to Consider

Some better-ranked stocks from the broader REIT sector are Host Hotels & Resorts HST and Prologis Inc. PLD, 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 and 2026 FFO per share is pegged at $2.05 and $2.04, respectively. This implies year-over-year growth of 4.1% for 2025 and a marginal fall for 2026.

The Zacks Consensus Estimate for PLD’s 2025 and 2026 FFO per share is pinned at $5.80 and $6.08, respectively. This calls for year-over-year growth of 4.3% for 2025 and 4.7% for 2026.

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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