Here's Why You Should Add OUTFRONT Media Stock to Your Portfolio Now

OUTFRONT Media OUT enjoys a diversified portfolio of advertising sites, both geographically and industry wise, in some of the key markets of the United States. Its efforts to expand the out-of-home (“OOH”) advertising platform bode well for long-term growth. Strategic investments in the digital billboard portfolio and ongoing efforts to convert its business from traditional static billboard advertising to digital displays will likely support its long-term growth.The Zacks Consensus Estimate for its 2024 funds from operations (FFO) per share stands at $1.73, indicating an increase of 5.5% year over year. For 2025, the same stands at $1.86, implying growth of 7.3% year over year.Over the past six months, shares of this Zacks Rank #2 (Buy) company have gained 7.6% against the industry's decline of 6.4%. Given the strength in its fundamentals, this stock seems to have additional room for growth.Image Source: Zacks Investment ResearchFactors That Make OUTFRONT Media Stock a Solid PickPortfolio Diversification: OUTFRONT Media’s advertising sites are geographically diversified, with a presence across the largest markets in the United States aiding in stable revenue generation. The large-scale presence enables its clients to reach a national audience and provides the flexibility to tailor campaigns to specific regions or markets.This OOH advertising company provides communication and advertising services to a wide array of industries like healthcare/pharmaceuticals, retail, professional services and several transit authorities.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.Such expansion efforts in new assets and technology are likely to drive the company’s revenue and operating income before depreciation and amortization (OIBDA) growth in the upcoming period. For the fourth quarter of 2024, management expected U.S. media revenues to grow approximately 3%, with billboards in the low single digits and transit growing high single digits, led by the New York Metropolitan Transportation Authority (MTA).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 in order to tap growth opportunities.In March 2024, OUTFRONT Media announced the expansion of programmatic transit advertising in New York City's MTA system, covering nearly all subway stations owned by the MTA across New York City’s five boroughs and key areas of Long Island and Metro-North Railroad Systems. This expansion will create America's largest programmatically available full-motion transit network.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.Acquisitions: OUTFRONT Media has also capitalized on acquisitions to enhance its portfolio. In the first nine months of 2024, the company acquired several assets for approximately $11.2 million. Management expects to complete approximately $25 million of acquisitions in 2024. With such expansion efforts, the company remains poised to grow over the long term.Other Stocks to ConsiderSome other top-ranked stocks from the REIT sector are Terreno Realty TRNO and Cousins Properties CUZ, each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.The consensus estimate for Terreno Realty’s 2025 FFO per share has been revised marginally northward over the past month to $2.67.The Zacks Consensus Estimate for CUZ’s 2025 FFO per share has been raised marginally over the past month to $2.74.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.Free Today: Profiting from The Future’s Brightest Energy SourceThe demand for electricity is growing exponentially. At the same time, we’re working to reduce our dependence on fossil fuels like oil and natural gas. Nuclear energy is an ideal replacement.Leaders from the US and 21 other countries recently committed to TRIPLING the world’s nuclear energy capacities. 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