Not a pretty picture for out of home stocks.  All the public out of home companies failed to beat the market during the past three months due to fears about a recession impacting ad spending.  The S&P 500 declined 10%.    Lamar was off 17%, Boston Omaha down 27%, Clear Channel Outdoor off 29% and OUTFRONT Media off 37%.  Clear Channel’s high leverage makes it extra sensitive to bad news and recession worries.    OUTFRONT’s stock tumbled after the company announced a $511 million writedown on its transit business due to high transit costs and a delayed recovery in transit ridership and revenues.

Stock performance for the three months ended October 31, 2023.  Lamar (green), OUTFRONT (purple) Boston Omaha (grey), Clear Channel Outdoor (blue) S&P 500 (black)

Out of home companies have failed to beat the S&P 500 over the past five years.  The S&P 500 has increased 51% over the past five years.  Lamar Advertising is up 9%, Boston Omaha and OUTFRONT down 48% and Clear Channel Outdoor down 80%.  Lamar and OUTFRONT were beating the market until covid hit and neither stock has matched the market since then.

Stock performance for five years ended October 31, 2023.  Lamar (green), OUTFRONT (purple) Boston Omaha (grey), Clear Channel Outdoor (blue) S&P 500 (black)

We’ve added Boston Omaha to out of home stock tracking because out of home accounts for approximately 46% of the company’s consolidated net assets.

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