Shares of Clear Channel Outdoor Holdings Inc. (CCO) hit a 52-week high of $10.73 on Dec 31, 2014, before closing the trading session slightly lower at $10.59. Clear Channel’s share price has been on steadily climbing up since mid-October. Despite its strong price appreciation, this Zacks Rank #3 (Hold) stock still has enough fundamentals that may further drive the stock upward. 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 recently inked a 10-year deal with iHeart Media Inc. to deliver unique advertising opportunities to local, regional and national brands through broadcast of cable TV program to airport travelers. Clear Channel boasts of the only airport television network that links brand campaigns to a variety of content from leading TV Networks such as ABC, FOX, NBC, E!, and PGA Tour. The strategic tie-up also enables airport authorities to offer customized TV stations featuring local businesses and airport promotions.
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.
In addition, Clear Channel is concentrating on strengthening its business and expanding its client base globally and has already started to invest in and grow national and local sales platforms in radio. There is incredible innovation in the out-of-home advertising sector to reach mobile consumers. At the same time the company is taking adequate steps for increased digital investments.
Also, the company maintains a sound and flexible balance sheet with ample liquidity that enables it to capitalize on potential business deals to fuel top-line growth.
Other Stocks to Consider
Clear Channel currently has a Zacks Rank #3 (Hold). Other stocks worth considering in the industry include Omnicom Group Inc. (OMC), Hipcricket, Inc. (HIPP) and TubeMogul, Inc. (TUBE), each carrying a Zacks Rank #2 (Buy).
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