A strong stock as of late has been Outfront Media (OUT). Shares have been marching higher, with the stock up 11.8% over the past month. The stock hit a new 52-week high of $33.08 in the previous session. Outfront Media has gained 36.1% since the start of the year compared to the -0% move for the Zacks Finance sector and the 11.6% return for the Zacks REIT and Equity Trust - Other industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on May 7, 2026, Outfront Media reported EPS of $0.11 versus consensus estimate of $0.28.
For the current fiscal year, Outfront Media is expected to post earnings of $2.23 per share on $1.93 in revenues. This represents a 12.06% change in EPS on a 5.58% change in revenues. For the next fiscal year, the company is expected to earn $2.28 per share on $1.98 in revenues. This represents a year-over-year change of 2.02% and 2.34%, respectively.
Valuation Metrics
Outfront Media may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Outfront Media has a Value Score of C. The stock's Growth and Momentum Scores are B and C, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 14.7X current fiscal year EPS estimates, which is a premium to the peer industry average of 12.5X. On a trailing cash flow basis, the stock currently trades at 17.5X versus its peer group's average of 12.8X. Additionally, the stock has a PEG ratio of 1.47. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this is even more important than the company's VGM Score. Fortunately, Outfront Media currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Outfront Media fits the bill. Thus, it seems as though Outfront Media shares could still be poised for more gains ahead.
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OUTFRONT Media Inc. (OUT): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).