The US out of home stocks suffered in the second quarter of 2022 as investors sold on fears that a recession will hurt ad based companies for than the market.  The S&P 500 index declined 16% on recession fears.  Lamar stock dropped 25% in the second quarter.  Outfront declined by 40%.  Clear Channel Outdoor declined 80%.  Clear Channel is what investors refer to as a high beta or high volatility stock.  It’s high leverage means that it will be squeezed more than OUTFRONT of Lamar in a recession.  High leverage means less money for acquisitions and capex and a possible bankruptcy if we have a really really bad recession.

A muted but familiar pattern shows up when you look at last year’s stock performance.  The S&P 500 is down 13%, Lamar down 16%, OUTFRONT down 30% and Clear Channel Outdoor down 60%.

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