Lamar Advertising Co (LAMR): Today's Featured Media Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Lamar Advertising ( LAMR) pushed the Media industry lower today making it today's featured Media laggard. The industry as a whole closed the day down 0.5%. By the end of trading, Lamar Advertising fell 50 cents (-1.3%) to $38.77 on average volume. Throughout the day, 1.1 million shares of Lamar Advertising exchanged hands as compared to its average daily volume of 1.1 million shares. The stock ranged in price between $38.64-$39.60 after having opened the day at $39.53 as compared to the previous trading day's close of $39.27. Other companies within the Media industry that declined today were: LodgeNet Interactive Corporation ( LNET), down 14.7%, Gray Television ( GTN.A), down 9.8%, VisionChina Media ( VISN), down 7.1%, and Charm Communications ( CHRM), down 7%.
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Lamar Advertising Company, together with its subsidiaries, provides outdoor advertising services. Its outdoor advertising displays include billboards, such as bulletins, posters, and digital billboards; and logo signs to advertise nearby gas, food, camping, lodging, and other attractions. Lamar Advertising has a market cap of $3.11 billion and is part of the services sector. The company has a P/E ratio of 439.4, above the S&P 500 P/E ratio of 17.7. Shares are up 42.8% year to date as of the close of trading on Friday. Currently there are four analysts that rate Lamar Advertising a buy, two analysts rate it a sell, and four rate it a hold.

TheStreet Ratings rates Lamar Advertising as a hold. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income and revenue growth. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the media industry could consider PowerShares Dynamic Media ( PBS) while those bearish on the media industry could consider ProShares Ultra Sht Consumer Services ( SCC).

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