On Jan 18, Zacks Investment Research upgraded technical services provider Clear Channel Outdoor Holdings Inc. (CCO) to a Zacks Rank #1 (Strong Buy) largely on the back of strong long-term fundamentals.
Clear Channel’s share price has been on an uptrend since Dec 2013, barring one or two occasions. The stock hit a 52-week high of $10.69 on Dec 3 and is currently trading at $9.98 for a healthy year-over-year return of 28.0%. Despite its price appreciation, Clear Channel still has the wherewithal for the stock to climb up. Investors remain upbeat as the company continues to bring new advertising opportunities to the market and aims to expand its business relationships with new advertisers.
Growth Drivers
Focused expansion into emerging markets, new business relationships with advertisers and financial flexibility are the primary driving factors for Clear Channel.
Clear Channel is one of the largest outdoor advertising companies in the world with displays spread across 40 countries worldwide. The company aims to use innovative advertising concepts to expand its reach to consumers.
At present, Clear Channel is concentrating on strengthening its business and expanding its client base globally. The company has made strategic investments to extend its national and local sales platforms on radio to capitalize on the huge growth potential in the out-of-home advertising sector, reaching out to mobile consumers. At the same time the company is taking adequate steps for increased digital investments.
Also, Clear Channel maintains a sound and flexible balance sheet with ample liquidity for key acquisitions to fuel its top-line growth.
Estimate Revisions
Over the last 7 days, the earnings estimates for Clear Channel did not show any upward or downward revision for the current quarter and fiscal year. Despite the lack of estimate revisions, we anticipate an uptrend for the stock backed by its strong growth potential.
Other Stocks to Consider
Other players in the industry worth reckoning include Lionbridge Technologies Inc. (LIOX), Virtusa Corp. (VRTU) and Huron Consulting Group Inc. (HURN), each carrying a Zacks Rank #2 (Buy).
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