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Why Sirius XM (SIRI) Outpaced the Stock Market Today

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In the latest close session, Sirius XM (SIRI - Free Report) was up +1.82% at $22.97. The stock exceeded the S&P 500, which registered a gain of 0.52% for the day. Elsewhere, the Dow gained 0.63%, while the tech-heavy Nasdaq added 0.48%.

Prior to today's trading, shares of the satellite radio company had gained 4.06% lagged the Consumer Discretionary sector's gain of 5.55% and the S&P 500's gain of 4.27%.

The investment community will be closely monitoring the performance of Sirius XM in its forthcoming earnings report. The company is scheduled to release its earnings on July 31, 2025. It is anticipated that the company will report an EPS of $0.8, marking stability compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $2.13 billion, indicating a 2.14% downward movement from the same quarter last year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.89 per share and a revenue of $8.52 billion, indicating changes of +62.36% and -2.1%, respectively, from the former year.

Investors should also pay attention to any latest changes in 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.06% lower. Sirius XM is currently sporting a Zacks Rank of #3 (Hold).

In the context of valuation, Sirius XM is at present trading with a Forward P/E ratio of 7.8. This represents a discount compared to its industry average Forward P/E of 14.71.

Also, we should mention that SIRI has a PEG ratio of 0.32. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Broadcast Radio and Television industry had an average PEG ratio of 1.2.

The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 96, this industry ranks in the top 40% of all industries, numbering over 250.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow SIRI in the coming trading sessions, be sure to utilize Zacks.com.


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