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Here's Why Sirius XM (SIRI) Fell More Than Broader Market
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In the latest close session, Sirius XM (SIRI - Free Report) was down 1.08% at $21.99. The stock's performance was behind the S&P 500's daily loss of 0.61%. Elsewhere, the Dow lost 0.26%, while the tech-heavy Nasdaq lost 0.93%.
The stock of satellite radio company has risen by 2.44% in the past month, leading the Consumer Discretionary sector's loss of 2.13% and the S&P 500's loss of 2.25%.
Investors will be eagerly watching for the performance of Sirius XM in its upcoming earnings disclosure. The company is expected to report EPS of $0.69, up 16.95% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $2.07 billion, indicating a 0.25% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $3.09 per share and a revenue of $8.54 billion, demonstrating changes of -3.13% and -0.24%, respectively, from the preceding year.
Investors might also notice recent changes to analyst estimates for Sirius XM. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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 last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Sirius XM is currently a Zacks Rank #3 (Hold).
In terms of valuation, Sirius XM is presently being traded at a Forward P/E ratio of 7.2. For comparison, its industry has an average Forward P/E of 11.47, which means Sirius XM is trading at a discount to the group.
We can also see that SIRI currently has a PEG ratio of 0.38. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Broadcast Radio and Television industry currently had an average PEG ratio of 4.36 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 149, placing it within the bottom 40% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Here's Why Sirius XM (SIRI) Fell More Than Broader Market
In the latest close session, Sirius XM (SIRI - Free Report) was down 1.08% at $21.99. The stock's performance was behind the S&P 500's daily loss of 0.61%. Elsewhere, the Dow lost 0.26%, while the tech-heavy Nasdaq lost 0.93%.
The stock of satellite radio company has risen by 2.44% in the past month, leading the Consumer Discretionary sector's loss of 2.13% and the S&P 500's loss of 2.25%.
Investors will be eagerly watching for the performance of Sirius XM in its upcoming earnings disclosure. The company is expected to report EPS of $0.69, up 16.95% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $2.07 billion, indicating a 0.25% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $3.09 per share and a revenue of $8.54 billion, demonstrating changes of -3.13% and -0.24%, respectively, from the preceding year.
Investors might also notice recent changes to analyst estimates for Sirius XM. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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 last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Sirius XM is currently a Zacks Rank #3 (Hold).
In terms of valuation, Sirius XM is presently being traded at a Forward P/E ratio of 7.2. For comparison, its industry has an average Forward P/E of 11.47, which means Sirius XM is trading at a discount to the group.
We can also see that SIRI currently has a PEG ratio of 0.38. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Broadcast Radio and Television industry currently had an average PEG ratio of 4.36 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 149, placing it within the bottom 40% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.