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Sirius XM (SIRI) Stock Drops Despite Market Gains: Important Facts to Note

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The latest trading session saw Sirius XM (SIRI - Free Report) ending at $22.52, denoting a -0.79% adjustment from its last day's close. The stock fell short of the S&P 500, which registered a gain of 0.49% for the day. Meanwhile, the Dow lost 0.2%, and the Nasdaq, a tech-heavy index, added 1.22%.

The the stock of satellite radio company has fallen by 12.49% in the past month, lagging the Consumer Discretionary sector's loss of 8.83% and the S&P 500's loss of 8.15%.

Investors will be eagerly watching for the performance of Sirius XM in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.69, reflecting a 1.43% decrease from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $2.09 billion, indicating a 3.46% decrease compared to the same quarter of the previous year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.20 per share and a revenue of $8.54 billion, representing changes of +79.78% and -1.88%, respectively, from the prior year.

Any recent changes to analyst estimates for Sirius XM should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

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, the Zacks Consensus EPS estimate has shifted 1.19% upward. At present, Sirius XM boasts a Zacks Rank of #3 (Hold).

With respect to valuation, Sirius XM is currently being traded at a Forward P/E ratio of 7.08. Its industry sports an average Forward P/E of 11.1, so one might conclude that Sirius XM is trading at a discount comparatively.

It is also worth noting that SIRI currently has a PEG ratio of 0.71. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. SIRI's industry had an average PEG ratio of 1.23 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 52, placing it within the top 21% of over 250 industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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