Sirius XM (SIRI) Sees a More Significant Dip Than Broader Market: Some Facts to Know

Sirius XM (SIRI) closed the most recent trading day at $21.99, moving -1.83% from the previous trading session. The stock's change was less than the S&P 500's daily loss of 1.51%. Meanwhile, the Dow experienced a drop of 0.97%, and the technology-dominated Nasdaq saw a decrease of 2.01%.

Coming into today, shares of the satellite radio company had gained 6.46% in the past month. In that same time, the Consumer Discretionary sector lost 3.7%, while the S&P 500 lost 3.63%.

The investment community will be closely monitoring the performance of Sirius XM in its forthcoming earnings report. It is anticipated that the company will report an EPS of $0.69, marking a 16.95% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $2.07 billion, up 0.25% from the prior-year quarter.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.09 per share and a revenue of $8.54 billion, indicating changes of -3.13% and -0.24%, respectively, from the former 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, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. At present, Sirius XM boasts a Zacks Rank of #3 (Hold).

In terms of valuation, Sirius XM is presently being traded at a Forward P/E ratio of 7.25. This signifies a discount in comparison to the average Forward P/E of 12.53 for its industry.

It's also important to note that SIRI currently trades at a PEG ratio of 0.38. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Broadcast Radio and Television industry currently had an average PEG ratio of 4.3 as of yesterday's close.

The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 152, putting it in the bottom 38% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow SIRI in the coming trading sessions, be sure to utilize Zacks.com.

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

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