Sirius XM (SIRI) closed the most recent trading day at $22.58, moving -2.04% from the previous trading session. The stock trailed the S&P 500, which registered a daily loss of 0.29%. On the other hand, the Dow registered a loss of 0.37%, and the technology-centric Nasdaq decreased by 0.34%.
The satellite radio company's shares have seen a decrease of 0.37% over the last month, surpassing the Consumer Discretionary sector's loss of 0.43% and falling behind the S&P 500's gain of 3.08%.
The investment community will be paying close attention to the earnings performance of Sirius XM in its upcoming release. The company is expected to report EPS of $0.79, up 194.05% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $2.14 billion, indicating a 1.23% downward movement from the same quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.71 per share and revenue of $8.52 billion. These totals would mark changes of +52.25% and -2.02%, respectively, from last year.
Investors should also take note of any recent adjustments to analyst estimates for Sirius XM. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.43% higher. Sirius XM is holding a Zacks Rank of #3 (Hold) right now.
From a valuation perspective, Sirius XM is currently exchanging hands at a Forward P/E ratio of 8.5. For comparison, its industry has an average Forward P/E of 29.57, which means Sirius XM is trading at a discount to the group.
It is also worth noting that SIRI currently has a PEG ratio of 0.35. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Broadcast Radio and Television industry stood at 2.04 at the close of the market yesterday.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 180, placing it within the bottom 28% of over 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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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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