Momentum Investor's Dream Stock: Outfront Media (OUT)

As a momentum investor, OUTFRONT Media (OUT) could be a good pick. The company has a Zacks Rank of #3 (Hold), a Momentum Style Score of B, and a VGM Score of B. OUT has gained 13.5% in the last year and boasts an average earnings surprise of 6.4%. With two analysts revising earnings estimates higher in the last 60 days, OUT is a stock to consider for investors seeking momentum.

As momentum investors, we are always on the lookout for stocks that are trending upward and have strong earnings surprises. OUTFRONT Media (OUT) fits this profile, with a Zacks Rank of #3 (Hold), a Momentum Style Score of B, and a VGM Score of B. Over the past year, OUT has gained 13.5%, and it boasts an average earnings surprise of 6.4%. Moreover, two analysts have revised their earnings estimates higher in the last 60 days, indicating positive sentiment among analysts [2].

OUTFRONT Media's second quarter results show progress in restructuring and cost-cutting, with adjusted funds from operations (AFFO) rising by 0.6% to $85 million. The company has also made strides in reducing its debt load, with net leverage decreasing to 4.8x from 5.4x [2]. This improvement in financial health, coupled with the stock's recent performance, makes OUT an attractive option for momentum investors.

However, it's essential to note that the company is still in the midst of a turnaround, and there are challenges ahead. The termination of high-cost contracts will create a revenue headwind in the coming quarters, but the company's focus on maximizing returns rather than revenue is a positive sign. Additionally, the company's dividend yield of 6.8% is attractive, although dividend increases may be delayed due to the ongoing turnaround and muted national advertising market [2].

In conclusion, OUTFRONT Media presents an intriguing opportunity for momentum investors. While there are challenges to overcome, the stock's recent performance, positive earnings surprises, and improving financial health make it a stock worth considering. As always, investors should conduct their due diligence and consider their risk tolerance before making any investment decisions.

References:
[1] https://finance.yahoo.com/news/momentum-investor-1-stock-could-135001252.html
[2] https://seekingalpha.com/article/4812472-outfront-media-turnaround-is-making-progress-rating-upgrade