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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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Sirius XM Radio

Sirius XM 185Shares in the always-interesting satellite-radio company are up 45% during the past year, notching multiyear highs. And they have done so with their usual volatility — Sirius has a beta of more than 2, meaning it’s more than twice as volatile as the broader market.

Still, with shares setting annual highs and remaining comfortably above their 50- and 200-day moving averages, you can see why traders expect more momentum to the upside.

Also, unlike Pandora, you can make an argument that valuation is on your side. The forward P/E of 31 represents a 30% discount to its own five-year average, according to data from Thomson Reuters Stock Reports.

That’s right: On a relative valuation basis, Sirius actually looks like a bargain — especially with a compound annual growth forecast of 33% a year for the next five years.

Article printed from InvestorPlace Media,

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