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3 Hot Radio Stocks: Which Should You Buy?

Pandora, Sirius and Cumulus have put up market-crushing returns. We look at whether any are still worth the risk.

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Pandora PThe company that helped put streaming radio on the map has seen its stock recover since stumbling out of the IPO gate. Pandora went public at $20 in June 2011 — and immediately plunged.

Anyone who showed a little faith at the depths of the selloff is looking pretty smart now. Shares are up 128% in the past year, vs. a 17% gain for the S&P 500. And there could be more momentum ahead: The stock’s at all-time highs and well above its 50- and 200-day moving averages.

But don’t be surprised if the bottom falls out. The forward price-to-earnings ratio of 71 is pretty rich — even for a company with a compound annual growth forecast of 45% a year for the next five years. Oh, and about 25% of the float is sold short.

Article printed from InvestorPlace Media, http://investorplace.com/2013/08/sirius-siri-pandora-cumulus-cmls-radio-stock/.

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