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Shark Tank star Kevin O'Leary recently stated that Lamar Advertising Company stock was a buy. After hearing that, I began to research the company to see if that was a stock that I should add to my portfolio, and in this article, I will be discussing my findings.
First, I want to discuss what Lamar Advertising even is. They are one of the largest outdoor advertising companies in the world. While they do a various kinds of outdoor advertisements, they are mostly known for their billboards. They also own the largest network of digital billboards with 3,800 displays. Lamar is a dominant player in the billboard advertisement world.
When Kevin O'Leary was talking about the company, he mentioned that they have had a rough year so far. They are down 30.93% since January 1, 2022. When seeing a downward spiral like this, I am always curious to then see how much they are currently trading above earnings. At time of writing, Lamar Advertising has a p/e ratio of 18.62. With their p/e ratio in mind, let's see how fast they are growing. From June 30, 2021 - June 30, 2022, Lamar Technologies increased their revenue by 19.02%. From 2020 - 2021, they had a revenue increase of almost 14%, and the year before that, they had a revenue decrease of around 10.54%.
One thing that I really like about this stock is their dividend. They offer a dividend yield of 5.64%. That's a very high dividend. Normally, I consider a high dividend to be a bad thing. Most of the time a company offers a really high dividend is because their stock is not doing well and they want to keep their investors around. They also raise dividends when the company isn't really growing at all, and they want to keep their investors happy. I believe Lamar Advertising could still have some growth left. I especially see this with digital billboard potential. When I see a business that I believe still has some growth left to do and offers a nice dividend, then I view it as a positive for the stock.
I personally believe that Lamar Advertising is pretty fairly valued. It's a stock that I would feel pretty confident over the long run that I would not lose money holding it. While I never tell anyone if they should or should not buy a stock, I could definitely see myself owning this stock in the future.
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