In the latest trading session, Sirius XM (SIRI) closed at $27.01, marking a -2.81% move from the previous day. The stock fell short of the S&P 500, which registered a loss of 2.65% for the day. Meanwhile, the Dow experienced a drop of 1.35%, and the technology-dominated Nasdaq saw a decrease of 4.18%.
The satellite radio company's shares have seen an increase of 3.89% over the last month, surpassing the Consumer Discretionary sector's loss of 0.12% and falling behind the S&P 500's gain of 5.47%.
Market participants will be closely following the financial results of Sirius XM in its upcoming release. On that day, Sirius XM is projected to report earnings of $0.78 per share, which would represent year-over-year growth of 36.84%. Alongside, our most recent consensus estimate is anticipating revenue of $2.14 billion, indicating a 0.11% upward movement from the same quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.1 per share and a revenue of $8.56 billion, representing changes of -2.82% and +0.02%, respectively, from the prior year.
Any recent changes to analyst estimates for Sirius XM should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Sirius XM is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Sirius XM has a Forward P/E ratio of 8.95 right now. This indicates a discount in contrast to its industry's Forward P/E of 14.25.
It is also worth noting that SIRI currently has a PEG ratio of 0.6. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As of the close of trade yesterday, the Broadcast Radio and Television industry held an average PEG ratio of 1.04.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 152, putting it in the bottom 38% of all 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Sirius XM Holdings Inc. (SIRI): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).