Sirius XM (SIRI) ended the recent trading session at $28.35, demonstrating a +2.13% change from the preceding day’s closing price. The stock’s change was more than the S&P 500’s daily loss of 0.05%. At the same time, the Dow lost 0.09%, and the tech-heavy Nasdaq lost 0.24%.
Shares of the satellite radio company witnessed a loss of 7.06% over the previous month, trailing the performance of the Consumer Discretionary sector with its loss of 2.34%, and the S&P 500’s loss of 1.42%.
Investors will be eagerly watching for the performance of Sirius XM in its upcoming earnings disclosure. On that day, Sirius XM is projected to report earnings of $0.78 per share, which would represent year-over-year growth of 36.84%. Meanwhile, the latest consensus estimate predicts the revenue to be $2.14 billion, indicating a 0.11% increase compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.1 per share and a revenue of $8.56 billion, representing changes of -2.82% and +0.02%, respectively, from the prior year.
Any recent changes to analyst estimates for Sirius XM should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Sirius XM presently features a Zacks Rank of #3 (Hold).
Looking at valuation, Sirius XM is presently trading at a Forward P/E ratio of 8.94. This signifies a discount in comparison to the average Forward P/E of 12.1 for its industry.
One should further note that SIRI currently holds a PEG ratio of 0.6. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. The Broadcast Radio and Television was holding an average PEG ratio of 1.01 at yesterday’s closing price.
