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5 Bargain Stocks to Buy for Under $10

Here are a few cheap picks that look promising

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Sirius XM Radio 

stocks to buy now siriSatellite provider Sirius XM Radio (SIRI) was in a tough spot last year as terrestrial radio remained entrenched and streaming Internet radio from companies like Pandora Media (P) and continued to gain momentum. But don’t count out Sirius XM.

SIRI has launched a streaming music service of its own, and its earnings have been simply stellar on the growth front. Sirius just that it added half a million new subscribers in Q3, and raised its full-year subscriber growth forecast. Revenue was also up 11% to a new quarterly record.

There is a risk to the bottom line, of course, and Sirius did see its profits decline. However, the company is looking to boost its subscription costs by 50 cents — a tiny amount that may not cause much disruption with subscribers but prop up earnings nicely — and that could lift SIRI higher.

A lack of consistent profitability remains a weight on shares, but it’s important to understand that revenue continues to climb and this stock is far from a fad.

It’s also important to remember that a big driver of growth (pardon the pun) is the sale of pre-packaged Sirius XM access in many new vehicles. Incremental improvement in the auto industry would mean a boost in the number of Sirius subscribers.

As it rolls back a bit from four-year highs on profit concerns, Sirius XM stock could be a nice buy on a dip before revenue and subscriber growth moves over into the profit category soon.

Article printed from InvestorPlace Media,

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