Stock Price & Analysis

Analysis and Insights

Technical Analysis:

LAMR's stock price is currently trading at $112.87, showing a slight increase of 1.50% during regular market hours. The stock is experiencing bearish momentum, as indicated by its RSI values (39.57 for RSI_6, 37.87 for RSI_12, and 38.18 for RSI_14), all below 50. The Stochastic Oscillator readings (StochK at 13.60 and StochD at 17.50) also suggest the stock is in oversold territory. The MACD is negative at -3.47, with the signal line below zero, confirming bearish momentum.

Valuation Analysis:

LAMR's valuation metrics show a forward P/E ratio of 15.23, which is in line with industry averages. The stock's dividend yield of 5.46% is attractive for income-focused investors.

Fundamental Analysis:

LAMR has a consensus rating of "Hold" with a price target of $126, down from $129. The company is set to report Q1 2025 earnings on May 1, with expected EPS of $1.09 and revenue of $539.19 million. The stock has a total return of 160.5% over the past 10 years, though this is lower than the S&P 500's 223.6% return during the same period.

Analyst Sentiment:

Analysts maintain a "Hold" rating on LAMR, with a price target of $126. The company's solid dividend yield and expected earnings growth make it attractive for income-focused investors.

Conclusion:

Given the current technical and fundamental analysis, it is recommended to hold LAMR stock. The stock's attractive dividend yield and expected earnings growth make it a stable investment, though the bearish technical indicators suggest caution. Investors should monitor the upcoming earnings report for further guidance.

LAMR stock is predicted to reach $132.33 in 2025, reflecting a 16% upside from its current price. This growth is driven by strong earnings expectations, with Q1 2025 EPS anticipated to grow to $1.09. The company's presentation at the Morgan Stanley conference and positive revenue trends further support this outlook.

The S1 support level for LAMR Stock is $110.26 ,The R1 resistant level for LAMR Stock is $115.97.

As of the end of day on 2025-03-26, the price of LAMR Stock was $113.17.

The target price for LAMR Stock according to analyst rating is 132.60, with the highest price target at 150.00 and the lowest at 124.00. Analysts have a Hold rating on LAMR Stock overall.

The market cap of LAMR is $11.5B.

Analysis and Insights

Lamar Advertising (LAMR) appears overvalued based on its current valuation metrics and market performance. Here's a concise analysis:

1. Valuation Metrics:

   • P/E Ratio: 34.54, significantly higher than industry averages, indicating a premium valuation.
   • EV/EBITDA: 15.81, suggesting the stock is pricey relative to earnings.
   • Price-to-Sales (P/S): 5.66, reflecting a high valuation for its revenue.
   • Price-to-Book (P/B): 11.90, indicating the stock is trading well above its book value.

2. Dividend Yield:

   • The stock offers a 4.44% dividend yield, which is attractive but does not offset its high valuation multiples.

3. Financial Performance:

   • Revenue (2024): $2.2 billion, with a net income of $361.5 million.
   • Gross Profit: $1.016 billion, and a net margin of 16.44%. While these figures are positive, they do not justify the current valuation levels.

4. Market Sentiment and Analyst Views:

   • The stock has a consensus rating of "Neutral" with a price target of $132.33, implying 16% upside potential. However, its 10-year return of 160.5% lags behind the S&P 500's 223.6% over the same period.

5. Recent News and Events:

   • Lamar Advertising is set to present at the Morgan Stanley Technology, Media and Telecom Conference on March 5, 2025, which could provide further insights into its growth strategy.
   • The company's Q4 2024 earnings showed revenue of $579.567 million, slightly below estimates, but management expressed optimism about 2025 growth.

6. Conclusion:
   Given the high P/E and EV/EBITDA ratios, LAMR appears overvalued. Investors should consider waiting for a price dip or clearer signs of growth before investing.

Lamar Advertising Company is an outdoor advertising company. The Company rents space for advertising on billboards, buses, shelters, benches, logo plates and in airport terminals. The Company operates three types of outdoor advertising displays: billboards, logo signs and transit advertising displays. The Company owns and operates approximately 160,400 billboard advertising displays in 45 states and Canada. It rents its advertising space on two types of billboards: bulletins and posters. In addition to traditional billboards, it also rents space for digital billboards, which are generally located on traffic arteries and city streets. It owns and operates approximately 4,750 digital billboard advertising displays in 43 states and Canada. It also provides logo signs in the United States, operating approximately 23 of the 26 privatized state logo sign contracts. The Company also operates approximately 139,250 logo sign advertising displays in 23 states and the province of Ontario, Canada.

Lamar Advertising (LAMR) stock is predicted to reach $200 by 2030, driven by its strong position in the outdoor advertising market and growth in digital billboards. The company's current price of $112.87 (as of March 24, 2025) and a consensus analyst target of $132.33 suggest significant upside potential. LAMR's 10-year return of 160.5% and a 5.46% dividend yield further support its long-term growth prospects.

LAMR has a total of 3550 employees.