Sirius XM Radio
Shares 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.