We updated our research report on Outfront Media Inc. OUT on Aug 16, 2016. This New York-based real estate investment trust (“REIT”) is the leading provider of out-of-home ("OOH") advertising space in important markets all over U.S. and Canada.

Presently, the company is expanding its ON Smart Media platform in the Minneapolis and St. Paul skyway systems. In fact, Outfront is striving hard to transform its focus from traditional static billboard displays to digital billboard displays. The digital billboard displays can run multiple advertisements in a single display, which provides huge opportunity to both the existing and the new customers to reach out to a wider audience. In line with this, the company has recently introduced ON Smart Media platform to develop software and hardware solutions to target new consumers.

Further, Outfront’s advertising sites are geographically diversified, with presence across 36 states as well as in Washington D.C. and in Canada. Moreover, this REIT provides services to various industries. Importantly, the OOH advertising is growing at a fast clip and continues to raise its market share in comparison to other forms of media.

However, Outfront has to compete with other outdoor advertisers for customers, display locations and structures. The company also competes with other media, including traditional platforms such as television, radio, print media, direct mail marketers and online, mobile & social media platforms. This intense competition can partly hinder its growth prospects. Additionally, seasonality of business, dependence on the prospects of advertisers and national economy and any rise in interest rates pose challenges before Outfront.

OUTFRONT MEDIA Price

OUTFRONT MEDIA Price | OUTFRONT MEDIA Quote

The stock presently carries a Zacks Rank #3 (Hold).

Investors interested in the REIT sector can consider stocks like CoreSite Realty Corporation COR, Gramercy Property Trust Inc. GPT and HCP, Inc. HCP. All these stocks hold a Zacks Rank #2 (Buy).

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
HCP INC (HCP): Free Stock Analysis Report
 
GRAMERCY PPT TR (GPT): Free Stock Analysis Report
 
OUTFRONT MEDIA (OUT): Free Stock Analysis Report
 
CORESITE REALTY (COR): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research