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Exterior grade plywood. There are also non processed wood types that can work well for outdoor signs. Just to name a few, there is Red wood, Cedar and cypress. Some newer alternatives are what is called "Heat treated" or "torrefied" wood where a heating process closes the cells of the wood fiber. This process allows the use of woods with poor outdoor longetivity to perform as well as cedar for example. Poplar would be one of the most used for heat treating. It finds it primary use for decking.....but also for signage. The advantage is that cost of (commun species) heat treated wood is far less expensive than cedar.

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