In the latest close session, Sirius XM (SIRI) was up +1.21% at $21.75. The stock outpaced the S&P 500's daily loss of 1.16%. Elsewhere, the Dow saw a downswing of 0.47%, while the tech-heavy Nasdaq depreciated by 1.81%.
Coming into today, shares of the satellite radio company had gained 2.77% in the past month. In that same time, the Consumer Discretionary sector gained 1.09%, while the S&P 500 gained 1.03%.
The upcoming earnings release of Sirius XM will be of great interest to investors. The company's earnings per share (EPS) are projected to be $0.77, reflecting a 7.23% decrease from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $2.18 billion, showing a 0.58% drop compared to the year-ago quarter.
SIRI's full-year Zacks Consensus Estimates are calling for earnings of $2.77 per share and revenue of $8.54 billion. These results would represent year-over-year changes of +55.62% and -1.83%, respectively.
Investors should also take note of any recent adjustments to analyst estimates for Sirius XM. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Right now, Sirius XM possesses a Zacks Rank of #3 (Hold).
Looking at valuation, Sirius XM is presently trading at a Forward P/E ratio of 7.75. This denotes a discount relative to the industry average Forward P/E of 15.77.
We can also see that SIRI currently has a PEG ratio of 0.32. 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 Broadcast Radio and Television industry had an average PEG ratio of 1.35 as trading concluded yesterday.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 150, this industry ranks in the bottom 40% of all industries, numbering over 250.
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.
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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