Sirius XM (SIRI – Free Report) closed at $6.21 in the latest trading session, marking no change from the prior day. This change was narrower than the S&P 500’s daily loss of 0.92%. Meanwhile, the Dow lost 0.77%, and the Nasdaq, a tech-heavy index, lost 1.65%.
Coming into today, shares of the satellite radio company had gained 4.02% in the past month. In that same time, the Consumer Discretionary sector lost 2.61%, while the S&P 500 lost 2.56%.
Investors will be hoping for strength from SIRI as it approaches its next earnings release, which is expected to be January 30, 2019. On that day, SIRI is projected to report earnings of $0.06 per share, which would represent year-over-year growth of 20%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.48 billion, up 5.66% from the year-ago period.
SIRI’s full-year Zacks Consensus Estimates are calling for earnings of $0.26 per share and revenue of $5.75 billion. These results would represent year-over-year changes of +30% and +6.05%, respectively.
It is also important to note the recent changes to analyst estimates for SIRI. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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. The Zacks Consensus EPS estimate has moved 7.14% higher within the past month. SIRI is holding a Zacks Rank of #2 (Buy) right now.
Investors should also note SIRI’s current valuation metrics, including its Forward P/E ratio of 23.66. This valuation marks a premium compared to its industry’s average Forward P/E of 14.23.
It is also worth noting that SIRI currently has a PEG ratio of 1.58. 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 was holding an average PEG ratio of 0.96 at yesterday’s closing price.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 78, putting it in the top 30% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.