Lamar Advertising Company (REIT) (NASDAQ:LAMR), which is in the reits business, and is based in United States, saw a decent share price growth in the teens level on the NASDAQGS over the last few months. With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, could the stock still be trading at a relatively cheap price? Let’s examine Lamar Advertising Company (REIT)’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.
What's the opportunity in Lamar Advertising Company (REIT)?
Great news for investors – Lamar Advertising Company (REIT) is still trading at a fairly cheap price. According to my valuation, the intrinsic value for the stock is $152.57, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. Lamar Advertising Company (REIT)’s share price also seems relatively stable compared to the rest of the market, as indicated by its low beta. If you believe the share price should eventually reach its true value, a low beta could suggest it is unlikely to rapidly do so anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range.
Can we expect growth from Lamar Advertising Company (REIT)?
Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. Lamar Advertising Company (REIT)’s earnings growth are expected to be in the teens in the upcoming years, indicating a solid future ahead. This should lead to robust cash flows, feeding into a higher share value.
What this means for you:
Are you a shareholder? Since LAMR is currently undervalued, it may be a great time to increase your holdings in the stock. With an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as capital structure to consider, which could explain the current undervaluation.
Are you a potential investor? If you’ve been keeping an eye on LAMR for a while, now might be the time to make a leap. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy LAMR. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed investment decision.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Lamar Advertising Company (REIT). You can find everything you need to know about Lamar Advertising Company (REIT) in the latest infographic research report. If you are no longer interested in Lamar Advertising Company (REIT), you can use our free platform to see my list of over 50 other stocks with a high growth potential.
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