Sirius XM (SIRI) Falls More Steeply Than Broader Market: What Investors Need to Know

Sirius XM (SIRI) closed at $28.99 in the latest trading session, marking a -2.62% move from the prior day. This move lagged the S&P 500's daily loss of 0.38%. On the other hand, the Dow registered a loss of 0.51%, and the technology-centric Nasdaq decreased by 0.29%.

Shares of the satellite radio company witnessed a loss of 0.37% over the previous month, trailing the performance of the Consumer Discretionary sector with its gain of 1.41%, and the S&P 500's gain of 2.08%.

The upcoming earnings release of Sirius XM will be of great interest to investors. The company is predicted to post an EPS of $0.77, indicating a 8.33% decline compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.16 billion, up 0.06% from the year-ago period.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.02 per share and a revenue of $8.6 billion, signifying shifts of -5.33% and +0.47%, respectively, from the last year.

Investors should also take note of any recent adjustments to analyst estimates for Sirius XM. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.31% higher within the past month. Sirius XM currently has a Zacks Rank of #3 (Hold).

In terms of valuation, Sirius XM is presently being traded at a Forward P/E ratio of 9.86. This represents a discount compared to its industry average Forward P/E of 11.4.

We can additionally observe that SIRI currently boasts a PEG ratio of 0.65. 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 1 at yesterday's closing price.

The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 90, this industry ranks in the top 37% of all industries, numbering over 250.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the 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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This article originally published on Zacks Investment Research (zacks.com).

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