Sirius XM (SIRI) closed at $24.43 in the latest trading session, marking a +1.54% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.21%. Elsewhere, the Dow saw an upswing of 0.25%, while the tech-heavy Nasdaq appreciated by 0.45%.
Shares of the satellite radio company have appreciated by 12.32% over the course of the past month, outperforming the Consumer Discretionary sector's gain of 5.33%, and the S&P 500's gain of 3.07%.
The upcoming earnings release of Sirius XM will be of great interest to investors. In that report, analysts expect Sirius XM to post earnings of $0.78 per share. This would mark year-over-year growth of 192.86%. At the same time, our most recent consensus estimate is projecting a revenue of $2.14 billion, reflecting a 1.23% fall from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $2.73 per share and revenue of $8.52 billion, which would represent changes of +53.37% and -2.02%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Sirius XM. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been a 1.29% rise in the Zacks Consensus EPS estimate. As of now, Sirius XM holds a Zacks Rank of #3 (Hold).
With respect to valuation, Sirius XM is currently being traded at a Forward P/E ratio of 8.82. This denotes a discount relative to the industry average Forward P/E of 27.92.
It's also important to note that SIRI currently trades at a PEG ratio of 0.36. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Broadcast Radio and Television industry had an average PEG ratio of 1.61 as trading concluded yesterday.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 170, putting it in the bottom 32% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Sirius XM Holdings Inc. (SIRI): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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