5 Stocks Under $5 for 2013

The usual caveats apply, but these low-cost shares could net you big upside

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5 Stocks Under $5 for 2013

Sirius XMSIRIUS XM RADIO LOGO1 5 Stocks Under $5 for 2013

Yes, satellite provider Sirius XM Radio (NASDAQ:SIRI) is in a tough spot since terrestrial radio remains pretty entrenched and streaming radio from companies like Pandora (NYSE:P) continue to gain momentum. But don’t count SIRI out yet.

In its latest earnings report, despite a lower bottom line that missed earnings targets, it posted continued subscriber growth and revenue growth that beat the Street. The problem of consistent profitability remains a weight on shares, but it’s important to understand that revenue continues to climb — this is hardly a company with its best days behind it. It’s up about 50% year-to-date in 2012.

What’s more, it’s important to remember that a big driver of growth (pardon the pun) for SIRI is the packaged sale of Sirius XM access with new vehicles … and incremental improvement in the auto industry means a boost to subscribers.

Though perhaps a bit overbought in the near term as it hovers near four-year highs, Sirius XM stock could be a nice buy on a pullback. And a bonus is that unlike some of the other picks on this list, SIRI is very liquid and trades millions of shares daily, so you won’t be exposed to low-volume volatility.


Article printed from InvestorPlace Media, http://investorplace.com/2012/11/5-stocks-under-5-for-2013/.

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