Based on the aggregated intelligence of 145,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, outdoor advertising specialist Lamar Advertising (NASDAQ:LAMR) has received the dreaded one-star ranking.

With that in mind, let's take a closer look at Lamar's business and see what CAPS investors are saying about the stock right now.

Lamar facts

Headquarters (Founded)

Baton Rouge, La. (1989)

Market Cap

$2.54 billion



Trailing-12-Month Revenue

$1.07 billion


CEO Kevin Reilly, Jr. (since 1989)
CFO Keith Istre (since 1989)

Trailing-12-Month Return on Equity



$47.7 million / $2.7 billion

Year-to-Date Return



Clear Channel Outdoor (NYSE:CCO)

CAPS Members Bearish on LAMR Also Bearish on

D.R. Horton (NYSE:DHI)

CAPS Members Bullish on LAMR Also Bullish on

Cisco Systems (NASDAQ:CSCO)

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 57% of the 179 members who have rated Lamar believe the stock will underperform the S&P 500 going forward. These bears include cashsage and All-Star tortillatree, who is ranked in the top 15% of our community.

Just two weeks ago, cashsage painted a particularly ugly picture of the stock: "[Lamar] has an illiquid balance sheet and a too high valuation compared to its sales potential. It is also loss making at least until 2011."

In a pitch from one day later, tortillatree gave Fools even more good reason to stay out of the billboard business:

1) companies are going bankrupt ... there's less competition for your business 2) money is tight. [E]ven though marketing SHOULD be the last thing to go in the budget, it's often the first. 3) advertising rates are going down everywhere ... tv, radio, newspapers all want your ad. [B]illboards become less attractive when you have so many other options in the media for less money

[I]ts business is bound to shrink in the near term. So I'm not saying they will fail or go under, no, their business structure is solid, but a fair value for their stock price is about $5-$7 in my opinion.

What do you think about Lamar, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. The CAPS community is waiting to hear your opinions. CAPS is 100% free, so get started!

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Google is a Motley Fool Rule Breakers pick. The Fool's disclosure policy always gets a perfect score.