Summary
- Lamar Advertising (LAMR) shows strong technical indicators, including 100% technical buy signals, a 56.62+ Weighted Alpha, and a 57.64% gain in the last year.
- The stock is trading above its 20, 50, and 100-day moving averages, with a recent price of $135.54 and a 50-day moving average of $121.33.
- Fundamental factors include a market cap of $13.66 billion, a P/E of 16.96, a 3.93% dividend yield, and projected revenue and earnings growth.
- Analysts offer mixed ratings with price targets ranging from $98 to $166, highlighting LAMR's defensible market position and potential for industry consolidation.
The Chart of the Day belongs to the outdoor billboard company Lamar Advertising (LAMR) I found the stock by using Barchart's powerful screening functions to find stocks with the highest technical buy signals, highest Weighted Alpha, superior current momentum and having a Trend Seeker buy signal then used the Flipchart feature to review the charts for consistent price appreciation. Since the Trend Seeker signaled a buy on 8/27 the stock gained 8.75%.
Lamar Advertising Company operates as an outdoor advertising company in the United States and Canada. The company owns and operates billboards, logo signs, and transit advertising displays, as well as rents space for advertising on billboards, buses, shelters, benches, logo plates, and in airport terminals. Lamar Advertising Company was founded in 1902 and is headquartered in Baton Rouge, Louisiana.
Barchart's Opinion Trading systems are listed below. Please note that the Barchart Opinion indicators are updated live during the session every 20 minutes and can therefore change during the day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report.
Barchart Technical Indicators:
- 100% technical buy signals
- 56.62+ Weighted Alpha
- 1.52 - 60 month Beta
- 57.64% gain in the last year
- Trend Seeker buy signal
- Above its 20, 50 and 100 day moving averages
- 16 new highs and up 12.39% in the last month
- Relative Strength Index 74.83%
- Technical support level at $131.54
- Recently traded at $135.54 with 50 day moving average of $121.33
Fundamental Factors:
- Market Cap $13.66 billion
- P/E 16.96
- Dividend yield 3.93%
- Revenue expected to grow 4.90% this year and another 4.80% next year
- Earnings are estimated to increase 4.50% this year an additional 14.60% next year and continue to compound at an annual rate of 3.00% for the next 5 years
Analysts and Investor Sentiment -- I don't buy stocks because everyone else is buying but I do realize that if major firms and investors are dumping a stock it's hard to make money swimming against the tide:
- Wall Street analyst gave 1 strong buy and 5 hold opinions on the stock
- Analysts' price targets are between $122 and $140 with a consensus of $130
- Value Line give the stock its average 3 rating with price targets of between $98 and $166 with a mid-point of $132 and comments: " Barriers to entry and digitalization should also spur growth. In many communities, there has been resistance to billboards, as residents find them unsightly and oppose efforts to add more. Hence, the ones that already exist have been mostly grandfathered in."
- CFRAs MarketScope rates the stock a hold with a price target of $121 and comments:"We are positive on LAMR’s size and economies of scale and think there is room for further consolidation in the industry. We also view LAMR’s position as defensible, given strict regulations and the permit process for billboards."
- MorningStar rates the stock a below average 2 star rating with Fair Value at $124 or 7% over valued
- 8,170 investors monitor the stock on Seeking Alpha
Additional disclosure: The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance and reevaluate your stop losses at least on a weekly basis.
On the date of publication, Jim Van Meerten did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
