Lamar Advertising (LAMR) Highlighted As Strong And Under The Radar Stock Of The Day

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Lamar Advertising ( LAMR) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified Lamar Advertising as such a stock due to the following factors:

  • LAMR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $40.4 million.
  • LAMR is making at least a new 3-day high.
  • LAMR has a PE ratio of 89.8.
  • LAMR is mentioned 1.65 times per day on StockTwits.
  • LAMR has not yet been mentioned on StockTwits today.
  • LAMR is currently in the upper 20% of its 1-year range.
  • LAMR is in the upper 35% of its 20-day range.
  • LAMR is in the upper 45% of its 5-day range.
  • LAMR is currently trading above yesterday's high.

'Strong and Under the Radar' stocks tend to be worthwhile stocks to watch for a variety of factors including historical back testing and price action. Market technicians refer to such stocks as being in an accumulation phase before a mark-up and peak. Traders and hedge funds have frequently found that these types of stocks continue to build a solid price base and then ultimately spike higher and peak when others 'discover' how good the stock is performing. By leveraging the social discovery aspect of StockTwits we are highlighting stocks that don't currently receive much attention from retail investors, but we suspect may soon garner more attention.

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More details on LAMR:

Lamar Advertising Company operates as an outdoor advertising company in the United States. The stock currently has a dividend yield of 6.3%. LAMR has a PE ratio of 89.8. Currently there are 5 analysts that rate Lamar Advertising a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for Lamar Advertising has been 1.0 million shares per day over the past 30 days. Lamar Advertising has a market cap of $4.3 billion and is part of the services sector and media industry. The stock has a beta of 1.94 and a short float of 7.9% with 8.42 days to cover. Shares are up 1.7% year-to-date as of the close of trading on Wednesday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Lamar Advertising as a buy. 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, revenue growth, expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from the ratings report include:
  • LAMAR ADVERTISING CO reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, LAMAR ADVERTISING CO increased its bottom line by earning $0.42 versus $0.10 in the prior year. This year, the market expects an improvement in earnings ($0.89 versus $0.42).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Media industry. The net income increased by 105.0% when compared to the same quarter one year prior, rising from $17.09 million to $35.05 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 8.9%. Since the same quarter one year prior, revenues slightly increased by 4.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The gross profit margin for LAMAR ADVERTISING CO is rather high; currently it is at 66.45%. Regardless of LAMR's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 10.46% trails the industry average.
  • Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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