Sirius XM (SIRI) Rises But Trails Market: What Investors Should Know

In the latest trading session, Sirius XM (SIRI) closed at $23.08, marking a +1.41% move from the previous day. This move lagged the S&P 500's daily gain of 2.91%. Elsewhere, the Dow saw an upswing of 2.49%, while the tech-heavy Nasdaq appreciated by 3.83%.

The stock of satellite radio company has risen by 3.74% in the past month, leading the Consumer Discretionary sector's loss of 9.16% and the S&P 500's loss of 7.64%.

Investors will be eagerly watching for the performance of Sirius XM in its upcoming earnings disclosure. In that report, analysts expect Sirius XM to post earnings of $0.69 per share. This would mark year-over-year growth of 16.95%. Meanwhile, the latest consensus estimate predicts the revenue to be $2.07 billion, indicating a 0.25% increase compared to the same quarter of the previous year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $3.09 per share and revenue of $8.54 billion, which would represent changes of -3.13% and -0.24%, respectively, from the prior year.

Investors should also pay attention to any latest changes in analyst estimates for Sirius XM. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Right now, Sirius XM possesses a Zacks Rank of #3 (Hold).

With respect to valuation, Sirius XM is currently being traded at a Forward P/E ratio of 7.37. This signifies a discount in comparison to the average Forward P/E of 12.8 for its industry.

One should further note that SIRI currently holds a PEG ratio of 0.39. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. SIRI's industry had an average PEG ratio of 4 as of yesterday's close.

The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 165, this industry ranks in the bottom 33% of all industries, numbering over 250.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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Sirius XM Holdings Inc. (SIRI): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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