Sirius XM (SIRI) shares soared 12.2% in the last trading session to close at $23.08. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 20.1% loss over the past four weeks.
The rise can be attributed to a favorable personal consumption price index report coupled with Berkshire Hathaway's enhanced investment in the company. Recent filings with the SEC showed Berkshire Hathaway acquiring an additional 5 million shares, consolidating their position with a significant 35% stake in SiriusXM.
From a valuation perspective, Sirius XM Holdings Inc is currently priced at $23.05, which is close to its 10-year low. The stock carries a dividend yield close to a 10-year high, reflecting its appeal to income-seeking investors.
This satellite radio company is expected to post quarterly earnings of $0.63 per share in its upcoming report, which represents a year-over-year change of -30%. Revenues are expected to be $2.17 billion, down 5% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Sirius XM, the consensus EPS estimate for the quarter has been revised 4.1% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on SIRI going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Sirius XM is a member of the Zacks Broadcast Radio and Television industry. One other stock in the same industry, Fox Corporation (FOX), finished the last trading session 1.5% higher at $46.65. FOX has returned 4.2% over the past month.
Fox's consensus EPS estimate for the upcoming report has changed +1.6% over the past month to $0.62. Compared to the company's year-ago EPS, this represents a change of +82.4%. Fox currently boasts a Zacks Rank of #2 (Buy).
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
