Out of Home Stocks Trail Market in Third Quarter 2020

Out of home stocks had a volatile third quarter as you can see below.  OUTFRONT led the way with a 3.9% gain for the third quarter of 2020.  Clear Channel Outdoor was up 2.4% and Lamar declined 0.2%  The Standard and Poors Index was up 9.6%.

Public out of home stocks compared to the S&P 500 for quarter ended September 30, 2020 Lamar (green), OUTFRONT (purple), Clear Channel Outdoor (blue), S&P 500 (black)

Clear Channel Outdoor has had the widest price swings and Insider expects this to continue.   Clear Channel carries the highest risk due to high leverage.  In addition, Clear Channel has been hit harder than OUTFRONT and Lamar by the coronavirus.  High risk stocks are always more volatile.  Clear Channel has a beta of 2.15 which means that it will moves 2.15% for every 1% movement in the stock market.  Lamar’s beta by contrast is only 1.32 which means Lamar stock is more than a third less volatile than Clear Channel Outdoor.

A year to date analysis shows that out of home stocks have recovered 35-75% of their covid losses but are trailing the Standard and Poors Index.  The S&P 500 index is up 4% year to date.  Lamar has recovered the most and the fastest from covid.  It’s stock is still off  25% year to date.  OUTFRONT is down 44% year to date.  Clear Channel Outdoor is down 65% year to date.

Public out of home stocks compared to the S&P 500 for 9 months ended September 30, 2020 Lamar (green), OUTFRONT (purple), Clear Channel Outdoor (blue), S&P 500 (black)

One final chart about the need to keep calm in a crisis.  Remember when the chicken little pundits were showing pictures of empty streets and wringing their hands about the lack of traffic?  If you’d bought out of home stock at the April 3 low you’d be sitting on a handsome gain.  Lamar is up 66%, Clear Channel Outdoor is up 58% and OUTFRONT is up 36%.

Public out of home stocks compared to the S&P 500 for April 3, 2020 to  September 30, 2020 Lamar (green), OUTFRONT (purple), Clear Channel Outdoor (blue), S&P 500 (black)

[wpforms id=”9787″]


Paid Advertisement

 

Print Friendly, PDF & Email

Comments are closed.