Sirius XM (SIRI) ended the recent trading session at $22.08, demonstrating a -1.08% change from the preceding day's closing price. This change lagged the S&P 500's daily gain of 0.21%. On the other hand, the Dow registered a gain of 1.35%, and the technology-centric Nasdaq decreased by 0.26%.
Shares of the satellite radio company have appreciated by 2.95% over the course of the past month, outperforming the Consumer Discretionary sector's loss of 1.63%, and the S&P 500's gain of 0.89%.
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 $0.77 per share. This would mark a year-over-year decline of 7.23%. Simultaneously, our latest consensus estimate expects the revenue to be $2.17 billion, showing a 0.6% drop compared to the year-ago quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.77 per share and a revenue of $8.54 billion, representing changes of +55.62% and -1.83%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Sirius XM. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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. 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 its valuation, Sirius XM is holding a Forward P/E ratio of 8.05. For comparison, its industry has an average Forward P/E of 15.83, which means Sirius XM is trading at a discount to the group.
One should further note that SIRI currently holds a PEG ratio of 0.34. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Broadcast Radio and Television industry had an average PEG ratio of 1.33 as trading concluded yesterday.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 166, placing it within the bottom 33% of over 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding 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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