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Sirius XM (SIRI) Suffers a Larger Drop Than the General Market: Key Insights

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In the latest close session, Sirius XM (SIRI - Free Report) was down 2.83% at $21.29. The stock fell short of the S&P 500, which registered a loss of 1.13% for the day. At the same time, the Dow lost 1.79%, and the tech-heavy Nasdaq lost 1.3%.

Shares of the satellite radio company witnessed a loss of 2.01% over the previous month, trailing the performance of the Consumer Discretionary sector with its gain of 3.54%, and the S&P 500's gain of 3.55%.

The upcoming earnings release of Sirius XM will be of great interest to investors. The company is forecasted to report an EPS of $0.8, showcasing no movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $2.13 billion, showing a 2.16% drop compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $2.89 per share and revenue of $8.52 billion, which would represent changes of +62.36% and -2.1%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Sirius XM. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Sirius XM is currently a Zacks Rank #3 (Hold).

Looking at its valuation, Sirius XM is holding a Forward P/E ratio of 7.58. This expresses a discount compared to the average Forward P/E of 13.58 of its industry.

Also, we should mention that SIRI has a PEG ratio of 0.31. 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 currently had an average PEG ratio of 1.14 as of yesterday's close.

The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 78, placing it within the top 32% of over 250 industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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