10 Worst Advertising Stocks To Buy According to Short Sellers

3. Clear Channel Outdoor Holdings, Inc. (NYSE:CCO)

Short Interest: 6.47%

Number of Hedge Fund Holders: 32

Clear Channel Outdoor Holdings (NYSE:CCO) is an out-of-home advertising company with segments across America, Europe-North, and Airports. It specializes in providing personalized advertising solutions through its elaborate portfolio of urban street furniture, roadside billboards, airport advertising displays, and other similar displays. Its America segment operates in the United States, excluding its airports. The Airports segment offers advertising options around and within the United States, including the Caribbean airports. In contrast, the Europe-North segment covers operations in the Nordics, the United Kingdom, and several other countries throughout central and northern Europe.

The company also has businesses in Latin America, including operations in Peru, Chile, Brazil, and Mexico. Clear Channel Outdoor Holdings (NYSE:CCO) generally operates by outsourcing the manufacturing and design of advertising structures to third parties. The company has a strong profitability mechanism. It delivered a consolidated revenue of $559 million in Q2 fiscal 2024, with a 5.2% – 5.4% increase, excluding foreign exchange rate movements. It also experienced growth in its America, Airport, and Europe-North segments. The company’s performance highlights strong demand from advertisers across most of its markets, with the Airports and Europe-North segments exhibiting exceptional strength.

Clear Channel Outdoor Holdings’ (NYSE:CCO) solid execution throughout a variety of its ongoing initiatives gives it a competitive market edge, expanding its revenue base. Although its Q2 results came through at the low end of guidance, the shift appears temporary due to factors such as softness in the national marketplace, especially in the media entertainment and medical servcies verticals. To ensure positive growth in the coming quarters, the company is improving its business trends to remain on track with its full-year guidance.

Such efforts are leading advertisers and investors alike to divert their attention to the company. Its digital billboard platform is another attraction, which now reaches more than 70% of US adults in its served market every month. In addition, the company’s data and analytics capabilities are allowing it to effectively calculate advertisers’ campaigns and target specific audiences.

Apart from growing revenue generation in its programmatic and digital initiatives, the company also attracts business through its enhanced sales team, website, and direct outreach. 32 hedge funds hold stakes in Clear Channel Outdoor Holdings (NYSE:CCO) as of Q2 2024, with Legion Partners Asset Management holding the highest stakes worth $36.5 million. It takes the third spot on our list of the worst advertising stocks to buy according to short sellers.