Sirius XM Radio
Market Cap: $23 billion
Expected 5-year EPS Growth: 29%
Sirius XM Radio (SIRI) made headlines and jumped to a new 52-week high earlier this week after announcing that it hit 25 million subscribers in the second quarter thanks to a record net addition of 715,000 customers, and raised its subscriber outlook for the year.
During the past five years, Sirius has posted average earnings growth of 27% — a trend that helped the stock recover from a price tag of 10 cents during the 2008-09 market lows to SIRI’s current price around $3.60.
Analysts are expecting Sirius to top that kind of growth in the coming years, too. Next year, it’s slated to improved EPS by nearly 32%, while the next half-decade’s annualized growth will top the past five years’ sum by 2 percentage points.
One tailwind for the company that should keep blowing: strong auto sales. U.S. auto sales hit a six-year high last month — good news for a company that makes a good chunk of change off folks getting a fancy new radio in their fancy new cars.