Lamar Advertising Co (LAMR): Today's Featured Services 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 Services sector lower today making it today's featured Services laggard. The sector as a whole closed the day up 0.9%. By the end of trading, Lamar Advertising fell $1.92 (-4.2%) to $43.62 on heavy volume. Throughout the day, 7,683,204 shares of Lamar Advertising exchanged hands as compared to its average daily volume of 798,200 shares. The stock ranged in price between $41.99-$44.78 after having opened the day at $42.03 as compared to the previous trading day's close of $45.54. Other companies within the Services sector that declined today were: Tivo ( TIVO), down 19.0%, Liquidity Service ( LQDT), down 10.4%, Birks & Mayors ( BMJ), down 8.1% and ENGlobal Corporation ( ENG), down 7.9%.
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Lamar Advertising Company operates as an outdoor advertising company in the United States. Lamar Advertising has a market cap of $3.5 billion and is part of the media industry. The company has a P/E ratio of 158.6, above the S&P 500 P/E ratio of 17.7. Shares are up 12.2% year to date as of the close of trading on Thursday. Currently there are 5 analysts that rate Lamar Advertising a buy, 1 analyst rates it a sell, and 4 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 revenue growth, good cash flow from operations and impressive record of earnings per share 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.

On the positive front, Envoy Capital Group ( ECGI), down 14.8%, SmartPros ( SPRO), down 12.2%, Taminco ( TAM), down 8.9% and National Research Corporation ( NRCIB), down 8.9% , were all gainers within the services sector with Time Warner ( TWX) being today's featured services sector leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the services sector could consider iShares Dow Jones US Cons Services ( IYC) while those bearish on the services sector could consider ProShares Ultra Short Consumer Sers ( SCC).

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