In the latest trading session, Sirius XM (SIRI) closed at $22.03, marking a +2.06% move from the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.19%. At the same time, the Dow added 0.22%, and the tech-heavy Nasdaq gained 0.31%.
Heading into today, shares of the satellite radio company had lost 0.21% over the past month, lagging the Consumer Discretionary sector's gain of 0.81% and the S&P 500's gain of 1.33%.
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 $0.77, down 7.23% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $2.17 billion, indicating a 0.6% decrease compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.77 per share and revenue of $8.54 billion. These totals would mark changes of +55.62% and -1.83%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Sirius XM. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Sirius XM is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Sirius XM is holding a Forward P/E ratio of 7.79. For comparison, its industry has an average Forward P/E of 15.36, which means Sirius XM is trading at a discount to the group.
It's also important to note that SIRI currently trades at a PEG ratio of 0.32. 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. SIRI's industry had an average PEG ratio of 1.27 as of yesterday's close.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 99, which puts it in the top 41% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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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