5 Reasons to Still Love SIRI Stock

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At the beginning of the year, I shared a list of 10 stocks to buy for 2015 ranging across industries. Sirius XM Holdings (SIRI) was perhaps one of the more familiar picks on the list … and it hasn’t disappointed so far this year.

5 Reasons to Still Love SIRI StockWith a market capitalization above $21 billion, a world-renowned satellite radio brand and an impressive growth profile, SIRI stock is still a solid option when it comes to stocks to buy in 2015.

As I mentioned the first time around, quarterly earnings are usually a few pennies per share — a large part of the reason short interest is a popular topic when it comes to Sirius stock. But the 100% growth-and-collapse cycle is really an artifact of dividing profits among 5.5 billion shares and then rounding up or down to the nearest penny.

SIRI stock also took a small beating in the wake of a class action lawsuit surrounding royalties — but that’s just a blip on the radar for this big-time radio name. Here are five reasons to tune into Sirius this year.

Why SIRI Stock Is a Buy

  1. Recent outperformance: First things first, SIRI stock is off to a solid start in 2015. Shares have climbed 10% year-to-date, much stronger than the broader market. They’ve leveled out a bit of late, but that makes it a good time to hop in, as they’ll likely have more upside — as the rest of this list shows.
  2. Analyst optimism: Out of the 17 analysts covering Sirius stock, six rate it a “strong buy” and five rate it a “buy” — not too shabby. Tally up their price targets and you get a median of $4.50, which is a sweet 15%-20% higher than where it’s been trading.
  3. Long-term growth: One reason analysts are bullish on Sirius stock (and you should be too) is the company’s long-term growth. Earnings continue to display momentum, with an estimated 30% annual growth on tap for the company over the next half-decade.
  4. Stock buybacks: Another driver of SIRI stock is continued buybacks. As Barron’s recently reported, the “satellite-radio firm could repurchase $2.5 billion in stock in 2015 and another $2.8 billion in 2016” thanks to cost discipline and subscriber growth. That’s the cherry on top for Sirius stock investors.
  5. Auto sales: Last but certainly not least, SIRI also has a mega-trend at its back — the booming auto industry. This year’s growth is on tap to be the fastest pace since 2005. That’s promising considering (as I mentioned back when I first picked SIRI) satellite radios are becoming a true staple in new cars.

All in all, Sirius stock is outperforming already this year and remains a blockbuster story and great buy going forward.

Hilary Kramer is the editor of GameChangers, Breakout Stocks Under $10, High Octane Trader,Absolute Capital Return and Value Authority. She is an accomplished investment specialist and market strategist with more than 25 years of experience in portfolio management, equity research, trading, and risk management. She has extensive expertise in global financial management, asset allocation, investment banking and private equity ventures, and is regularly sought after to provide her analysis on Bloomberg, CNBC, Fox Business Network, and other media.

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