Sirius XM (SIRI -0.23%) has interested and frustrated investors in recent years. It holds a monopoly on satellite radio in the U.S., and the stock's dividend yield is far above S&P 500 averages.
Unfortunately, despite Berkshire Hathaway holding over 37% of its shares, the stock's value has slid over the last five years, and competition from internet-based streaming services has limited subscriber growth.
Still, one might wonder whether it is time to buy Sirius XM stock amid the possibility of further recovery when it reports second-quarter earnings on July 30.
Image source: Getty Images.
This is a difficult question, as reactions to earnings reports are difficult to predict before the fact. Investors will probably like the fact that it rallied nearly 50% in the first half of 2026.
However, Sirius XM has long been a slow-growth business, making it less likely the report will spark more buying in the stock. In the first quarter of 2026, revenue grew by 1% year over year after pulling back by 2% during 2025.
Nonetheless, net income surged 20% in Q1, after it turned profitable in 2025. Looking forward, analysts forecast flat annual revenue growth for Q2 along with a 23% profit increase over the same period. Amid that improvement, investors can buy the stock for 12 times trailing earnings.
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Also, investors earn $1.08 per share annually in cash payouts while they wait for a stock recovery. That amounts to a dividend yield of 3.6%, far above the S&P 500's 1.1% average yield.
Such conditions indicate that investors should buy Sirius XM stock before July 30, but only if they are buying it for income.
Indeed, Sirius XM has a low earnings multiple and a generous dividend yield. Unfortunately, the flat revenue growth and low P/E ratio make it unlikely the quarterly report will point to any further growth catalysts.
Still, Sirius XM is a Berkshire Hathaway-owned stock selling at a low P/E ratio and paying a huge dividend. That makes it likely the communication stock is eventually due to move higher.
Will Healy has positions in Berkshire Hathaway. The Motley Fool has positions in and recommends Berkshire Hathaway. The Motley Fool has a disclosure policy.
The market expects Sirius XM (SIRI - Free Report) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 30. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus EstimateThis satellite radio company is expected to post quarterly earnings of $0.78 per share in its upcoming report, which represents a year-over-year change of +36.8%.
Revenues are expected to be $2.14 billion, up 0.1% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Sirius XM?For Sirius XM, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +2.56%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination indicates that Sirius XM will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Sirius XM would post earnings of $0.7 per share when it actually produced earnings of $0.72, delivering a surprise of +2.86%.
Over the last four quarters, the company has beaten consensus EPS estimates three times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Sirius XM appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Resources Investor Relations Journalists Agencies Client Login Send a Release News Products Contact , /PRNewswire/ -- SiriusXM (NASDAQ: SIRI) today announced that its Board of Directors declared a quarterly cash dividend of $0.27 per share of common stock. This regular quarterly dividend is payable in cash on August 26, 2026, to stockholders of record at the close of business on August 10, 2026.
About Sirius XM Holdings Inc.
SiriusXM is the leading audio entertainment company in North America with a portfolio of audio businesses including its flagship subscription entertainment service SiriusXM; the ad-supported and premium music streaming services of Pandora; an expansive podcast network; and a suite of business and advertising solutions. Together, SiriusXM reaches a combined monthly audience of approximately 255 million listeners. SiriusXM offers a broad range of content for listeners everywhere they tune in with a diverse mix of live, on-demand, and curated programming across music, talk, news, and sports. For more about SiriusXM, please go to: www.siriusxm.com.
Source: SiriusXM
Investor contacts:
Jennifer DiGrazia
[email protected]
If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Sirius XM (SIRI - Free Report) . This company, which is in the Zacks Broadcast Radio and Television industry, shows potential for another earnings beat.
This satellite radio company has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 5.97%.
For the most recent quarter, Sirius XM was expected to post earnings of $0.7 per share, but it reported $0.72 per share instead, representing a surprise of 2.86%. For the previous quarter, the consensus estimate was $0.77 per share, while it actually produced $0.84 per share, a surprise of 9.09%.
Price and EPS Surprise
For Sirius XM, estimates have been trending higher, thanks in part to this earnings surprise history. And when you look at the stock's positive Zacks Earnings ESP (Expected Surprise Prediction), it's a great indicator of a future earnings beat, especially when combined with its solid Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Sirius XM has an Earnings ESP of +3.62% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock's Zacks Rank #3 (Hold), it shows that another beat is possibly around the corner. The company's next earnings report is expected to be released on July 30, 2026.
With the Earnings ESP metric, it's important to note that a negative value reduces its predictive power; however, a negative Earnings ESP does not indicate an earnings miss.
Many companies end up beating the consensus EPS estimate, though this is not the only reason why their shares gain. Additionally, some stocks may remain stable even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Sirius XM (SIRI - Free Report) closed at $30.59 in the latest trading session, marking a -2.02% move from the prior day. This change lagged the S&P 500's 1.01% loss on the day. Meanwhile, the Dow lost 0.77%, and the Nasdaq, a tech-heavy index, lost 1.4%.
Prior to today's trading, shares of the satellite radio company had gained 11.38% outpaced the Consumer Discretionary sector's gain of 1.27% and the S&P 500's gain of 0.32%.
Analysts and investors alike will be keeping a close eye on the performance of Sirius XM in its upcoming earnings disclosure. The company's earnings report is set to go public on July 30, 2026. On that day, Sirius XM is projected to report earnings of $0.78 per share, which would represent year-over-year growth of 36.84%. Simultaneously, our latest consensus estimate expects the revenue to be $2.14 billion, showing a 0.11% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $3.1 per share and a revenue of $8.56 billion, demonstrating changes of -2.82% and +0.04%, respectively, from the preceding year.
Investors should also pay attention to any latest changes in analyst estimates for Sirius XM. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. At present, Sirius XM boasts a Zacks Rank of #2 (Buy).
Looking at its valuation, Sirius XM is holding a Forward P/E ratio of 10.06. This valuation marks a discount compared to its industry average Forward P/E of 13.48.
It's also important to note that SIRI currently trades at a PEG ratio of 0.67. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. By the end of yesterday's trading, the Broadcast Radio and Television industry had an average PEG ratio of 1.06.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 102, finds itself in the top 42% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
Shares of satellite radio business Sirius XM Holdings (SIRI +0.82%) rallied 47.7% in the first half of 2026, according to data from S&P Global Market Intelligence.
Sirius is an interesting value stock and has been a long-term holding of Warren Buffett's conglomerate, Berkshire Hathaway (BRKA +0.69%) (BRKB 0.78%), which added to its stake last year as the stock price fell to low levels.
With a low stock price heading into 2026, Sirius mounted a near-50% comeback as it inked a major partnership with advertising giant YouTube. In addition, Elon Musk's Space Exploration Technologies (SPCX +1.64%) initial public offering put a spotlight on the value of satellite spectrum, which Sirius owns as an asset on its balance sheet.
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Sirius links its ad engine with YouTube, as space becomes a focus Sirius came into 2026 trading at a bargain-basement valuation of around nine times earnings. While the company has a $9.7 billion debt load as of the last quarter and Sirius has been seeing net subscriber declines in recent years, its business is fairly stable and profitable, backed by recurring subscriptions and a smaller but growing advertising business.
That advertising business, which accounted for just under 20% of revenue last quarter, got a boost in April when Sirius XM announced a major deal with YouTube. Per the terms of the deal, advertisers can buy audio-focused ad inventory on YouTube through Sirius' advertising technology platform, SiriusXM Media. Sirius became an advertising solutions provider following its 2018 acquisition of Adwizz. Of note, this deal is exclusive and likely points to Sirius' experience delivering ads to higher-end audio consumers who can afford Sirius XM subscriptions.
In any case, the deal spurred at least one Wall Street analyst, Barton Crockett at Rosenblatt, to nearly double his price target on the stock, to $46 per share.
Sirius followed that piece of good news with a strong first quarter, in which both subscription and advertising revenue grew year over year, despite overall subscriber numbers continuing to slightly decline. While consolidated revenue grew only 1%, which isn't really much to write home about, it was a big deal for Sirius, which has been posting revenue declines in recent years. In addition, thanks to cost controls, adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) grew by a higher 6%, and earnings per share rallied 20%.
The stock took yet another leg higher in late May, when a Sirius executive forecast improved free cash flow of $1.5 billion in 2027, up from the $1.35 billion guided for this year and $1.26 billion last year. The executive also touched on the potential monetization of Sirius' 35 MHz spectrum holdings, with a focus on partnerships and future optionality for Sirius.
As space-based broadband giant SpaceX went public in June, putting a renewed focus on space-based communications, Sirius' spectrum holdings, which SpaceX or a rival could plausibly buy or lease, appeared to reveal hidden value in the company, pushing the stock up even further.
Image source: Getty Images.
Where Sirius goes from here After its first-half run, Sirius now trades at a higher but still cheap-looking 13 times trailing earnings per share, with a dividend yield of 3.6%.
So, things are certainly looking better for Sirius than they were at the beginning of the year. Still, the company will have to continue proving itself with sustained top-line growth, and will need to show new YouTube-related advertising revenues when the deal goes live in the Fall. One good quarter doesn't make a trend, and it appears the YouTube ad revenue acceleration may be somewhat baked into the stock price.
SiriusXM CEO Jennifer Witz sits down with CNBC's Julia Boorstin to discuss reports of a potential merger with iHeartMedia, the competitive landscape, SiriusXM's partnership with YouTube, and more.
As the streaming and audio industries evolve, Roku (ROKU 0.74%) and Sirius XM (SIRI 0.13%) offer different ways to play the market. Investors must decide between high-growth platform expansion and established cash flows.
Roku provides the operating system powering millions of smart televisions, while SiriusXM dominates the dashboard with its satellite radio and streaming services. Both companies are at a crossroads, with one navigating a massive merger and the other pivoting toward new advertising revenue. This comparison breaks down each business’s financial health and the risks it faces.
The case for RokuRoku is shifting from a hardware provider to a platform powerhouse, highlighted by a June 2026 agreement for Fox Corp (FOX 1.40%) to acquire the company for nearly $22 billion. Its streaming devices are sold primarily through Amazon (AMZN +0.84%), Best Buy (BBY +0.92%), Target (TGT +1.09%), and Walmart (WMT +0.88%), which account for roughly 81% of its device revenue. Customer concentration like this adds a layer of risk to the business, though the pending merger aims to integrate major sports and news content into its ecosystem.
Roku is a prominent player among media stocks because of its dominant streaming platform. In FY 2025, revenue reached nearly $4.7 billion, up approximately 15.2% from the prior year. The company reported net income of $88.4 million, reflecting a net margin of roughly 1.9% and a significant improvement from previous losses.
As of the December 2025 balance sheet, the debt-to-equity ratio is approximately 0.3x, while the current ratio is roughly 2.7x. This current ratio measures the ability to cover short-term debts with short-term assets; a higher number suggests better liquidity. Free cash flow reached nearly $478.4 million in FY 2025, though note that stock-based compensation represented roughly 73.2% of operating cash flow, which inflates reported cash generation since SBC is a non-cash expense added back in the cash flow statement.
The case for Sirius XMSirius XM operates a massive audio network with nearly 32.9 million satellite radio subscribers and approximately 41.1 million Pandora monthly active users. The business remains heavily dependent on the automotive industry for growth, although a 2026 deal to represent Alphabet's (GOOG 0.25%) (GOOGL +0.25%) YouTube audio advertising inventory expands its market. This partnership provides a new digital advertising revenue stream as the company navigates changes in how listeners consume audio content.
For FY 2025, revenue was roughly $8.6 billion, a slight decline of about 1.6% from the previous year. Despite the dip in sales, the company achieved a net income of nearly $805.0 million. This result translates to a net margin of approximately 9.4%, showing a return to profitability after a significant net loss in 2024.
Free cash flow for the year was strong at nearly $1.2 billion, providing significant capital for dividends or potential strategic acquisitions.
Risk profile comparisonThe pending acquisition by Fox Corp creates significant uncertainty regarding regulatory approval and future integration for Roku. The company also faces fierce competition from tech giants, including Amazon, Alphabet, and Walmart, the latter of which recently acquired Vizio to bolster its own software presence. Ongoing scrutiny regarding data privacy and a recent $25 million settlement also highlight the regulatory risks of managing a large user platform.
Sirius XM faces intense pressure from streaming platforms such as Spotify (SPOT +2.07%) and those operated by Alphabet, which are increasingly integrated into vehicle infotainment systems. The company's reliance on the cyclical automotive sector and a declining satellite subscriber base present long-term structural challenges. Furthermore, potential acquisition talks with iHeartMedia (IHRT 4.50%) could add financial leverage and introduce complex integration risks to the balance sheet.
Valuation comparisonSirius XM offers a lower forward P/E and P/S ratio than its peers, suggesting a lower valuation relative to its future earnings estimates.
MetricRokuSirius XMSector BenchmarkForward P/E57.7x9.7x16.7xP/S ratio4.5x1.2xSector benchmark uses the SPDR XLC sector ETF.
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
Ordinarily, the choice between Roku and Sirius XM would be a simple matter of growth potential versus steady cash flow. Income investors may find Sirius XM the better choice, while those banking on Roku’s continued growth in the connected TV (CTV) market might choose that investment instead.
But there’s another factor that changes the equation today.
Roku is benefiting from major growth in digital ad spending. It has a huge market share among TV streaming customers, as its platform is pre-installed on many smart TVs. It’s trading at a high valuation right now, though, reflecting investors’ high hopes for its profitability, although advertising revenue can be cyclical.
Sirius XM generates significant free cash flow and offers an attractive dividend yield of about 3.5%. Its churn rate, which is the number of subscribers who cancel service, is extremely low right now. Its stock is trading at a lower valuation, offering steady earnings and relatively low volatility.
The deciding factor, however, is Roku’s pending acquisition by Fox. Roku shareholders will receive $96 in cash plus 0.9693 shares of Fox Class A stock for each Roku share they own. While Roku’s stock may fluctuate until the transaction is completed, it still offers the opportunity to profit from the price spread.
If I were to choose between the two, I’d buy Roku. Although Sirius XM remains an attractive investment, the potential upside from the pending Fox acquisition makes Roku more compelling.
Resources Investor Relations Journalists Agencies Client Login Send a Release News Products Contact , /PRNewswire/ -- SiriusXM (NASDAQ: SIRI) will release its second quarter 2026 operating and financial results on Thursday, July 30, 2026. The company will host an investor conference call that morning at 8:00 a.m. ET to discuss results. A live webcast of the call will be available on the SiriusXM Investor Relations website at https://investor.siriusxm.com.
About Sirius XM Holdings Inc.
SiriusXM is the leading audio entertainment company in North America with a portfolio of audio businesses including its flagship subscription entertainment service SiriusXM; the ad-supported and premium music streaming services of Pandora; an expansive podcast network; and a suite of business and advertising solutions. Together, SiriusXM reaches a combined monthly audience of approximately 255 million listeners. SiriusXM offers a broad range of content for listeners everywhere they tune in with a diverse mix of live, on-demand, and curated programming across music, talk, news, and sports. For more about SiriusXM, please go to: www.siriusxm.com.
Source: SiriusXM
Investor contact:
Jennifer DiGrazia
1 (818) 384-4543
[email protected]
It didn't take long for new Federal Reserve Chair Kevin Warsh to make some waves. The Federal Open Market Committee unanimously approved the decision to hold the federal funds rate steady at the 3.5%-to-3.75% range this month. But that doesn't mean the Fed won't push rates higher later this year. Inflation, after all, remains stubbornly above the Fed's 2% goal.
However, the decision should give investors some breathing room as they consider dividend stocks to make up for low yields in today's fixed-income environment. Two names I like here include Sirius XM Radio (SIRI +2.13%) and Upbound (UPBD +3.02%). Both dividend stocks could benefit from the June 17 decision to hold interest rates steady. Let's take a closer look at these two high-yielding stocks.
Image source: Getty Images.
1. Sirius XM The country's lone player in premium satellite radio has been a surprising winner this year. Sirius XM is up 42% in 2026, as income investors gravitate toward this free cash flow generator that's showing signs of turning the corner. Even after the stock's pop, Sirius XM's attractive 3.8% yield is higher than that of the top money market funds.
You may think satellite radio as a premium platform peaked years ago, and you're right. Total subscribers for the service have fallen from its all-time high six years ago, but it's not as bad as you think. Today's total of 33 million subscribers is just 6% below the platform's peak. Revenue is less than 5% below its all-time high set in 2022, and adjusted net income has never been higher.
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This media stock is a money machine. Sirius XM expects to generate $1.35 billion in free cash flow this year. It's returning most of that money to shareholders through its chunky dividend and aggressive stock buybacks. The former is keeping income investors close. The latter is helping to prop up per-share profitability to today's record level.
Why does holding interest rates steady help Sirius XM? It's an entertainment platform primarily consumed in cars and trucks, and the last thing it needs is higher interest rates scaring away potential new-car buyers.
Sirius XM is starting to get better. After three years of modest top-line declines, revenue has risen marginally in back-to-back quarters.
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2. Upbound Despite its torrid run this year, you can still buy Sirius XM for just nine times forward earnings. If you want something with an even lower multiple, try Upbound on for size. The parent company of Rent-A-Center expects to earn between $4.00 and $4.35 a share in 2026. At its current price, Upbound enters the new trading week trading just shy of five times this year's adjusted earnings.
If Sirius XM's dividend is impressive, Upbound's current yield of 7.6% is more than double what the top money market funds are shelling out these days. Still, there's a lot of debt on its balance sheet. As you can probably guess by its flagship rent-to-own retail concept, it's at the mercy of cash-strapped customers who frequently default on the furniture, appliances, and consumer electronics they pick up on lease-to-own arrangements.
But this business still isn't getting the respect it deserves, given its high payout and low valuation. It's still growing. Revenue rose just 4% in its latest quarter, but that follows back-to-back years of 8% and then 9% revenue growth.
This story is also about more than just the namesake concept. It's a player in enterprise software through Acima, a software platform that lets other merchants offer lease-to-own purchase options that include Upbound. Its fastest-growing segment is Brigit, a well-rated budgeting smartphone app that saw a 40% revenue increase in its latest quarter.
Upbound's advantage from steady rates is fairly obvious. Its clientele is vulnerable to shifts in borrowing costs. If rates move higher, it wouldn't be a surprise to see business either slow down or default rates creep higher.
Sirius XM (SIRI - Free Report) ended the recent trading session at $28.35, demonstrating a +2.13% change from the preceding day's closing price. The stock's change was more than the S&P 500's daily loss of 0.05%. At the same time, the Dow lost 0.09%, and the tech-heavy Nasdaq lost 0.24%.
Shares of the satellite radio company witnessed a loss of 7.06% over the previous month, trailing the performance of the Consumer Discretionary sector with its loss of 2.34%, and the S&P 500's loss of 1.42%.
Investors will be eagerly watching for the performance of Sirius XM in its upcoming earnings disclosure. On that day, Sirius XM is projected to report earnings of $0.78 per share, which would represent year-over-year growth of 36.84%. Meanwhile, the latest consensus estimate predicts the revenue to be $2.14 billion, indicating a 0.11% increase compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.1 per share and a revenue of $8.56 billion, representing changes of -2.82% and +0.02%, respectively, from the prior year.
Any recent changes to analyst estimates for Sirius XM should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Sirius XM presently features a Zacks Rank of #3 (Hold).
Looking at valuation, Sirius XM is presently trading at a Forward P/E ratio of 8.94. This signifies a discount in comparison to the average Forward P/E of 12.1 for its industry.
One should further note that SIRI currently holds a PEG ratio of 0.6. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Broadcast Radio and Television was holding an average PEG ratio of 1.01 at yesterday's closing price.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 107, placing it within the top 44% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
It's easy to turn up the volume on a Sirius XM (SIRI +0.69%) satellite radio receiver. There's a knob or button for that. You can also turn up the volume on your dividend income with Sirius XM, but it takes a little more patience -- and math.
The country's lone provider of satellite radio serves a large audience, reaching 33 million subscribers to its premium audio platform. It also has a pretty large payout, currently yielding 3.85%. Let's dive into how many shares you would need to own to collect $1,000 in yearly dividends.
Image source: Getty Images.
Driving to a four-figure annual payout With a quarterly dividend of $0.27 a share -- or $1.08 a year -- it would take 926 shares of Sirius XM for you to generate $1,000 in annual distributions. This would be a roughly $26,000 stake at current prices. You're also hoping for capital appreciation on top of that passive income when investing in stocks rather than pure income-generating investments, but that introduces downside risk.
Another benefit of stocks is that their payouts can rise over time. The media stock's quarterly rate has nearly tripled since it initiated a distribution policy of a split-adjusted $0.10 per share nearly a decade ago. This could make the math kinder -- with fewer shares needed to reach a round milestone like $1,000 in annual dividends -- but that's not an assumption investors can make today.
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Sirius XM's quarterly dividend has remained steady at $0.27 for almost three years. With subscriber counts and revenue growth stalling during that time, Sirius XM has been more cautious than in its earlier history of hikes.
It's making more than enough money to cover its current distributions. Sirius XM is generating more than $1 billion in annual free cash flow. It's trading for just 12 times trailing earnings. The risks are there, but so is the upside if it can start growing its business again. For now, 926 shares is what you need to passively collect $1,000 a year in dividends from this unique media company.
Rick Munarriz has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The Zacks Broadcast Radio and Television industry is grappling with an escalation in cord-cutting despite a surge in demand for streaming content. However, industry players, such as Netflix (NFLX - Free Report) , Fox (FOXA - Free Report) , Roku Inc. (ROKU - Free Report) and Sirius XM (SIRI - Free Report) , are reaping the benefits of a massive spike in digital content consumption. These companies are thriving due to their diverse content offerings, which include original, regional and short-form content tailored for small screens like smartphones and tablets. Improved Internet speed and penetration, coupled with technological advancements, have been advantageous for industry participants. As monetization and revenues from advertising spending continue to be modest, strategies focused on profit protection, cash management and greater technology integration have gained significance and are expected to aid these companies in driving top-line growth in the near term.
Industry Description The Zacks Broadcast Radio and Television industry encompasses companies that provide entertainment, sports, news, non-fiction and musical content across television, radio and digital media platforms. These entities generate revenues through the sale of television and radio programs, advertising slots and subscriptions. With technological advancements and a growing demand for virtual reality and Internet radio, industry players are increasing their investments in research and development, as well as sales and marketing efforts, to remain competitive. The industry's focus is likely to shift toward sustaining current levels of operations, coupled with a renewed emphasis on flexibility. This approach would accelerate the transition to a variable cost model, thereby reducing fixed costs and enhancing agility in the face of evolving market dynamics.
4 Broadcast Radio and Television Industry Trends to Watch Shift in Consumer Preference a Key Catalyst: To adapt to the evolving landscape, companies are diversifying their content offerings for over-the-top (OTT) services alongside traditional linear TV. The availability of streaming services across a wide range of platforms has enabled them to reach a global audience, expand their international user base and attract advertisers to their platforms, thereby boosting ad revenues. The utilization of services that aid advertisers in measuring their return on investment and enhancing use cases is expected to benefit industry participants. Major leagues and events, such as the NFL, NHL, Olympics, European Games, EPL and elections, also contribute significantly to ad revenue generation.
Increased Digital Viewing Fuels Content Demand: Many industry participants, either launching their own OTT services or acquiring existing ones, leverage user insights to deliver tailored content. The surge in digital viewing has made consumer data readily available, allowing companies to apply artificial intelligence (AI) and machine learning techniques to create or procure targeted content. This approach not only boosts user engagement but also enables industry players to raise the prices of their services at opportune moments without the fear of losing subscribers.
Uncertain Macroeconomic Landscape Impedes Production and Ad Demand: Advertising is a significant revenue source for the Broadcast Radio and Television industry. However, industry participants are grappling with the effects of persistently high inflation, rising interest rates, increased capital costs, a soaring U.S. dollar and the looming threat of a recession. These factors have prompted advertisers to trim their ad budgets, which is expected to impact the top-line growth of industry players in the near term. Moreover, intense competition for ad dollars from tech and social media companies has been a significant impediment to the growth of industry participants.
Low-Priced Skinny Bundles Impact Revenues: The surge in cord-cutting has compelled industry participants to offer "skinny bundles." These Internet-based services often contain fewer channels than traditional subscriptions and are, therefore, more affordable. This move aligns with changing consumer viewing dynamics, as growth in Internet penetration and advancements in mobile, video and wireless technologies have boosted small-screen viewing. While these alternative services are expected to keep users engaged with their platforms, increasing the need for additional content, the low-priced skinny bundles are likely to dampen the top-line performance of industry players.
Zacks Industry Rank Indicates Dull Prospects The Zacks Broadcast Radio and Television industry is housed within the broader Zacks Consumer Discretionary sector. It currently carries a Zacks Industry Rank #164, which places it in the bottom 34% of more than 250 Zacks industries.
The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates dismal near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one.
The industry’s position in the bottom 50% of the Zacks-ranked industries results from a negative earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are pessimistic about this group’s earnings growth potential. Since June 30, 2025, the industry’s earnings estimates for 2026 have moved south by 6.3%.
Despite the gloomy industry outlook, a few stocks are worth watching, as these have the potential to outperform the market based on a strong earnings outlook. But before we present such stocks, it is worth first looking at the industry’s shareholder returns and current valuation.
Industry Lags Sector, S&P 500 The Zacks Broadcast Radio and Television industry has underperformed the broader Zacks Consumer Discretionary sector and the S&P 500 Index in the past six-month period.
The industry has plunged 19.8% over this period compared with the S&P 500’s 7.7% return and the broader sector’s decline of 11.5%, respectively.
6-Month Price Performance
Industry's Current Valuation On the basis of trailing 12-month Enterprise Value/ Earnings before Interest Tax Depreciation and Amortization (EV/EBITDA), which is a commonly used multiple for valuing Broadcast Radio and Television stocks, the industry is currently trading at 7.76X versus the S&P 500’s 18.49X and the sector’s 9.2X.
In the past five years, the industry has traded as high as 15.56X and as low as 4.92X, recording a median of 8.49X, as the chart below shows.
EV/EBITDA Ratio (TTM)
4 Broadcast Radio and Television Stocks to Watch Fox Corporation enters the near term with fundamental tailwinds drawn from its announcements. In April, FOX named Amazon Web Services its preferred AI cloud provider, strengthening FOX One's streaming and personalization capabilities. In May, independent studies showed FOX advertising driving up to 81% lift in real-world outcomes, while FOX One launched as a Roku Premium Subscription, widening distribution ahead of the FIFA World Cup 2026. In June, FOX secured a new NFL package in Mexico and agreed to acquire Roku, combining premium live sports and news with a platform reaching over 100 million households, targeting roughly $400 million in run-rate cost synergies. With World Cup rights, broadening digital reach and a strong balance sheet, this Zacks Rank #1 (Strong Buy) company's fundamentals support continued near-term momentum. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for fiscal 2026 earnings has moved north by 7.6% to $4.93 per share in the past 60 days. FOXA shares have lost 34% in the past six-month period.
Price and Consensus: FOXA
Netflix enters the second half of 2026 underpinned by strengthening fundamentals. Management's guidance calls for 2026 revenues of $50.7 billion to $51.7 billion, representing 12% to 14% growth, alongside operating margin expansion to 31.5% from 29.5% in 2025, reflecting genuine profitability gains. Advertising remains a key growth lever: the ad-supported tier now reaches over 250 million global monthly active viewers, with revenues on track to roughly double to about $3 billion, backed by new AI-driven ad tools, expanded programmatic buying, an enlarged NFL live sports slate and planned entry into 15 additional countries from 2027. April's mobile redesign, featuring the new Clips vertical discovery feed, should lift engagement, while June's record performance of KPop Demon Hunters reinforces continued content momentum.
The Zacks Consensus Estimate for 2026 earnings has moved north by 2% to $3.60 per share in the past 60 days. Shares of this Zacks Rank #3 (Hold) company have plunged 22.2% in the past six-month period.
Price and Consensus: NFLX
Roku's near-term fundamentals look encouraging. This Zacks Rank #3 company surpassed 100 million global streaming households in April, underscoring platform scale that drove 28% year-over-year platform revenue growth in the first quarter alongside expanding profitability. Management raised full-year guidance, projecting platform revenue growth near 21% to $5 billion and higher adjusted EBITDA, supported by accelerating advertising demand and record premium subscription sign-ups. New initiatives are reinforcing engagement: Roku Curate simplifies advertiser access to premium inventory, while a redesigned Home Screen introduced in May enhances content discovery across its expanding user base. A fall partnership with The CW Network should further broaden viewership reach. Separately, Roku and Fox Corporation announced a definitive merger agreement in June, adding a distinct near-term catalyst alongside these fundamentals.
The Zacks Consensus Estimate for 2026 earnings has moved north by 13.1% to $2.41 per share in the past 60 days. Roku shares have increased 22% in the past six-month period.
Price and Consensus: ROKU
SiriusXM’s first-quarter results showed free cash flow tripling year over year, churn falling to a record-low 1.5%, and EBITDA margin expanding, prompting management to reaffirm robust full-year guidance of roughly $8.5 billion in revenues, $2.6 billion in adjusted EBITDA, and $1.35 billion in free cash flow. Growth catalysts are building: April's exclusive YouTube audio-advertising partnership extends reach toward 255 million monthly listeners starting this fall, while May's expanded LiveRamp identity-targeting deal with AdsWizz strengthens programmatic monetization. June's video-podcast distribution agreement with Tubi adds 100 million monthly users, leveraging podcasting's strong revenue momentum. With leverage trending toward management's low-to-mid 3x target and continued capital returns, this Zacks Rank #3 company's broadening advertising ecosystem and disciplined execution support a constructive near-term outlook.
The Zacks Consensus Estimate for 2026 earnings has remained steady at $3.10 per share in the past 60 days. In the past six-month period, SIRI shares have returned 35.8%.
In the latest close session, Sirius XM (SIRI - Free Report) was up +1.46% at $27.86. The stock outpaced the S&P 500's daily loss of 0.57%. On the other hand, the Dow registered a gain of 0.64%, and the technology-centric Nasdaq decreased by 1.15%.
Shares of the satellite radio company witnessed a gain of 5.25% over the previous month, beating the performance of the Consumer Discretionary sector with its gain of 2.7%, and the S&P 500's gain of 2.14%.
Investors will be eagerly watching for the performance of Sirius XM in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.78, reflecting a 36.84% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.14 billion, up 0.11% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.1 per share and a revenue of $8.56 billion, indicating changes of -2.82% and +0.02%, respectively, from the former year.
Investors should also note any recent changes to analyst estimates for Sirius XM. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Sirius XM is currently a Zacks Rank #3 (Hold).
Investors should also note Sirius XM's current valuation metrics, including its Forward P/E ratio of 8.85. This valuation marks a discount compared to its industry average Forward P/E of 12.69.
It is also worth noting that SIRI currently has a PEG ratio of 0.59. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Broadcast Radio and Television was holding an average PEG ratio of 1.04 at yesterday's closing price.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 109, finds itself in the top 45% echelons of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
Sirius XM (SIRI - Free Report) reported $2.09 billion in revenue for the quarter ended March 2026, representing a year-over-year increase of 1.1%. EPS of $0.72 for the same period compares to $0.59 a year ago.
The reported revenue represents a surprise of +0.89% over the Zacks Consensus Estimate of $2.07 billion. With the consensus EPS estimate being $0.70, the EPS surprise was +3.45%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Sirius XM performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Subscribers - Sirius XM - Self-pay subscribers: 31,234 versus 31,130 estimated by two analysts on average.ARPU - Sirius XM: $14.99 versus the two-analyst average estimate of $15.06.Subscribers - Net additions - Sirius XM - Self-pay subscribers: -111 versus the two-analyst average estimate of -215.Subscribers - Sirius XM - Ending subscribers: 32,779 compared to the 32,686 average estimate based on two analysts.Revenue- Advertising revenue: $407 million compared to the $396.27 million average estimate based on three analysts. The reported number represents a change of +3.3% year over year.Revenue- Equipment revenue: $41 million versus $42.53 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a 0% change.Revenue- Other revenue: $31 million compared to the $29.64 million average estimate based on three analysts. The reported number represents a change of 0% year over year.Revenue- Pandora and Off-platform- Advertising revenue: $372 million compared to the $357.04 million average estimate based on three analysts. The reported number represents a change of +4.8% year over year.Revenue- Sirius XM- Subscriber revenue: $1.48 billion versus $1.47 billion estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +0.9% change.Revenue- Subscriber revenue: $1.61 billion versus the three-analyst average estimate of $1.61 billion. The reported number represents a year-over-year change of +0.6%.Revenue- Pandora and Off-platform- Subscriber revenue: $129 million versus $132.55 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -2.3% change.Revenue- Sirius XM- Equipment revenue: $41 million compared to the $43.29 million average estimate based on two analysts. The reported number represents a change of 0% year over year.View all Key Company Metrics for Sirius XM here>>>
Shares of Sirius XM have returned +14.3% over the past month versus the Zacks S&P 500 composite's +12.2% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.
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Published in earnings earnings-estimates-revisions earnings-surprise
Investors interested in stocks from the Broadcast Radio and Television sector have probably already heard of Sirius XM (SIRI - Free Report) and Netflix (NFLX - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Sirius XM has a Zacks Rank of #2 (Buy), while Netflix has a Zacks Rank of #3 (Hold) right now. This means that SIRI's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
SIRI currently has a forward P/E ratio of 8.63, while NFLX has a forward P/E of 25.88. We also note that SIRI has a PEG ratio of 0.71. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. NFLX currently has a PEG ratio of 1.18.
Another notable valuation metric for SIRI is its P/B ratio of 0.78. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, NFLX has a P/B of 12.46.
These metrics, and several others, help SIRI earn a Value grade of A, while NFLX has been given a Value grade of D.
SIRI stands above NFLX thanks to its solid earnings outlook, and based on these valuation figures, we also feel that SIRI is the superior value option right now.
Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the "long context," investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.
Even though momentum is a popular stock characteristic, it can be tough to define. Debate surrounding which are the best and worst metrics to focus on is lengthy, but the Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.
Below, we take a look at Sirius XM (SIRI - Free Report) , a company that currently holds a Momentum Style Score of B. We also talk about price change and earnings estimate revisions, two of the main aspects of the Momentum Style Score.
It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Sirius XM currently has a Zacks Rank of #2 (Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.
You can see the current list of Zacks #1 Rank Stocks here >>>
Set to Beat the Market? In order to see if SIRI is a promising momentum pick, let's examine some Momentum Style elements to see if this satellite radio company holds up.
A good momentum benchmark for a stock is to look at its short-term price activity, as this can reflect both current interest and if buyers or sellers currently have the upper hand. It's also helpful to compare a security to its industry; this can show investors the best companies in a particular area.
For SIRI, shares are up 4.43% over the past week while the Zacks Broadcast Radio and Television industry is down 2.48% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 13.24% compares favorably with the industry's 1.98% performance as well.
Considering longer term price metrics, like performance over the last three months or year, can be advantageous as well. Shares of Sirius XM have increased 19.2% over the past quarter, and have gained 38.15% in the last year. In comparison, the S&P 500 has only moved 4.15% and 30.86%, respectively.
Investors should also take note of SIRI's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. Right now SIRI is averaging 6,057,771 shares for the last 20 days..
Earnings OutlookThe Zacks Momentum Style Score also takes into account trends in estimate revisions, in addition to price changes. Please note that estimate revision trends remain at the core of Zacks Rank as well. A nice path here can help show promise, and we have recently been seeing that with SIRI.
Over the past two months, 2 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost SIRI's consensus estimate, increasing from $3.09 to $3.10 in the past 60 days. Looking at the next fiscal year, 2 estimates have moved upwards while there have been no downward revisions in the same time period.
Bottom LineTaking into account all of these elements, it should come as no surprise that SIRI is a #2 (Buy) stock with a Momentum Score of B. If you've been searching for a fresh pick that's set to rise in the near-term, make sure to keep Sirius XM on your short list.
New On The BlockCigna CEO Brian Evanko stated that the insurer is exploring strategic options for eviCore, which manages medical claims and reviews prior authorization requests. Cigna also plans to stop selling health insurance plans to individuals starting in 2027, as the company “aims to position Cigna for the future.”
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Updates From The BlockOff The BlockBankruptcy BlockSaint Augustine's University has filed for Chapter 11 bankruptcy. The Raleigh, North Carolina-based college lists its liabilities between $50 million and $100 million and assets of $100 million and $500 million. Enrollment has declined more than 80% in the past decade. Students will need to find another accredited institution to complete their degrees, Bloomberg reported.
Wren Kitchens, a partner brand of Home Depot, filed for Chapter 7 bankruptcy and has closed 15 of its East Coast showrooms and in-store Home Depot studio locations. "We regret to inform you that our showrooms and studios are now closed," the company wrote on its website.
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Key Takeaways SIRI beat Q1 estimates with EPS of 72 cents and revenues rising 1.1% YoY.Ad revenues climbed 3.3%, driving growth alongside modest gains in subscriber revenues.Adjusted EBITDA rose 6% as cost cuts boosted margins and free cash flow more than tripled. Sirius XM Holdings (SIRI - Free Report) stock edged up 1% after its April 30, 2026, earnings announcement, modestly outpacing the 1% drop seen across the Zacks Broadcast Radio and Television industry.
The company reported first-quarter 2026 earnings of 72 cents per share, beating the Zacks Consensus Estimate of 70 cents by 2.86%. It reported earnings of 59 cents per share in the year-ago quarter.
The company reported total revenues of $2.09 billion, up 1.1% from $2.07 billion in the year-ago quarter and beat the Zacks Consensus Estimate by 0.89%.
Subscriber revenues (77% of total revenues) increased 0.62% from the year-ago quarter’s reported figure to $1.61 billion. The figure surpassed the Zacks Consensus Estimate by 0.39%.
Advertisement revenues (19.5% of total revenues) increased 3.3% year over year to $407 million, surpassing the Zacks Consensus Estimate by 2.71%.
Equipment revenues (2.0% of total revenues) were flat year over year at $41 million, missing the Zacks Consensus Estimate by 3.59%.
Other revenues (1.5% of total revenues) were flat year over year at $31 million, surpassing the Zacks Consensus Estimate by 4.58%.
Sirius XM Standalone Segment’s DetailsSirius XM’s Standalone segment revenues (76.0% of total revenues) were $1.59 billion, up 1% year over year, driven by higher subscriber revenues from pricing actions.
Subscriber revenues increased 0.9% year over year to $1.48 billion, reflecting the impact of recent pricing actions, partially offset by a slightly lower average subscriber base.
Total subscriber base declined 0.3% year over year to 32.78 million.
Advertising revenues were $35 million, down 10% year over year, primarily due to softness in news channels.
Self-pay subscribers decreased 0.3% year over year to 31.23 million. Self-pay net subscriber loss in the reported quarter was 111K compared with a loss of 303K in the year-ago period. Average revenue per user amounted to $14.99, up from $14.86 year over year. Self-pay monthly churn improved to 1.5% from 1.6% in the year-ago period.
Net subscriber loss in the reported quarter was 148K compared with a net loss of 362K in the year-ago period.
Pandora & Off-Platform DetailsThe Pandora and Off-Platform segment continued to shoulder most of the company’s advertising mix. Segment revenues increased 3% year over year to $501 million, with advertising revenues rising 5% to $372 million, partially offset by a 2% decline in subscriber revenues to $129 million amid a smaller subscriber base.
Self-pay subscribers of Pandora ended the quarter at 5.6 million. Ad-supported listener hours were 2.22 billion in the first quarter, down 6% year over year. Advertising revenue per thousand listener hours decreased 4% year over year to $84.11.
SIRI's Q1 Operating DetailsIn the first quarter, total operating expenses decreased 3% year over year to $1.64 billion, primarily backed by impairment, restructuring and other costs of $6 million compared with $48 million in the prior-year period.
Profitability improved on a combination of modest top-line growth and cost control. Adjusted EBITDA increased 6% year over year to $666 million, and adjusted EBITDA margin expanded 140 basis points to 32.0%, reflecting lower customer service, product and technology, and general and administrative expenses.
Management also reiterated its 2026 focus on efficiency, noting $45 million of progress toward a targeted $100 million in incremental gross cost savings for the year. The cost program included $27 million in operating expense run-rate savings and $18 million in capital expenditure savings.
Balance Sheet & Cash Flow of SIRIAs of March 31, 2026, cash and cash equivalents were $75 million compared with $94 million as of Dec. 31, 2025, according to the company's consolidated balance sheet.
Long-term debt as of March 31, 2026, was $9.69 billion compared with $8.65 billion as of Dec. 31, 2025.
During the quarter, Sirius XM completed a $1.25 billion refinancing, retired all 2026 notes and redeemed $250 million of 2027 notes, while returning $113 million to its shareholders through $91 million in dividends and $22 million in share repurchases.
For the first quarter, cash flow from operations was $271 million compared with $242 million in the year-ago quarter.
Free cash flow totaled $171 million, more than tripling from $56 million in the prior-year period, driven by higher adjusted EBITDA and lower capital expenditures.
SIRI Reaffirms 2026 GuidanceSIRI reaffirmed its full-year 2026 outlook, projecting revenues of approximately $8.5 billion, adjusted EBITDA of approximately $2.6 billion and free cash flow of approximately $1.35 billion.
The company also reiterated its longer-term target of $1.5 billion in free cash flow in 2027, reflecting a continued focus on operational efficiency and cash flow conversion.
SIRI’s Zacks Rank & Other Stocks to ConsiderSIRI currently carries a Zacks Rank #2 (Buy).
Alto Ingredients (ALTO - Free Report) , Central Garden & Pet (CENT - Free Report) and Fox (FOX - Free Report) are some other top-ranked stocks that investors can consider in the broader Consumer Discretionary sector. While Alto Ingredients currently sports a Zacks Rank #1 (Strong Buy), Central Garden & Pet and Fox carry a Zacks Rank #2 each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Alto Ingredients shares have surged 88.6% year to date. ALTO is set to report its first-quarter 2026 results on May 6.
Central Garden & Pet shares have gained 14.3% year to date. CENT is set to report its second-quarter fiscal 2026 results on May 6.
Fox shares have declined 12.3% year to date. FOX is set to report its third-quarter fiscal 2026 results on May 11.
Warren Buffett got serious about Sirius XM (SIRI 0.25%) in his final few quarters as CEO of Berkshire Hathaway. Buffett's iconic conglomerate had been adding to its stake in Sirius XM over the past two years, amassing a stake of better than 37% in the satellite radio monopoly before the generational investor stepped down from the helm.
We may never know if it was Buffett or one of his many skilled executives who led the charge to build out Berkshire's position. We do know that Sirius XM stock underperformed the market during Buffett's time at Berkshire. However, it's been a different story this year. Sirius XM is beating the market with a 33% gain so far in 2026.
Offering a healthy yield and in the early stages of turning things around, is Sirius XM a dividend stock that you should buy, too? Let's hit the road and crank up the music. This could be Berkshire's biggest gainer in 2026.
Image source: Getty Images.
The volume knob is finally starting to move Sirius XM may not look like much from the vantage point of the rearview mirror. It has posted modest revenue declines for three consecutive years. Its subscriber count peaked at nearly 35 million more than six years ago. The media stock may seem to be fading out like many of the musical tracks on its airwaves, but this song still has a few more verses to belt out.
For starters, Sirius XM has now posted back-to-back quarters of increasing revenue. It was just a 0.2% year-over-year uptick in the fourth quarter of last year and a 1.1% step up in last week's report, but there's a corner that is slowly but definitely being turned.
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Coming around the bend It's not just the fundamentals turning the corner. After five straight years of stock declines, Sirius XM is crushing the market in 2026. The stock's yield -- a hearty 4.1% even after the shares rising 35% off their November lows -- is attracting income investors. Routinely clocking in with 10-figure annual free cash flow ($1.35 billion projected by Sirius XM for this year), it's good for the money.
Sirius XM reiterated its 2026 guidance in last week's first-quarter report. This is great to see, but the risks remain. Sirius XM is directly in the path of two headwinds: rising gas prices and the impact they may have on diminishing consumer spending.
More pain at the pump in the coming months can limit the time folks spend driving. This would lower the perceived value of a premium radio service consumed primarily in automobiles. The other dagger is that with less disposable income after paying up for gas, a satellite radio subscription could be next on the chopping block for cost-cutting consumers.
There's also a bullish scenario: The war in Iran subsides, inflationary pressures recede, and car sales surge, along with Sirius XM's recent acceleration in revenue growth. Even if that scenario doesn't play out, the stock is still cheap for a business that appears to be coming around. You can buy Sirius XM for 8.6 times this year's earnings and 7.9 times next year's target.
Shares of satellite radio company Sirius XM (SIRI 0.25%) rallied 16.7% in April, according to data from S&P Global Market Intelligence.
Sirius reported solid earnings in April, but not until the very last day of the month. Rather, most of the month's move higher came from a new partnership announcement with Alphabet's (GOOG +0.44%) (GOOGL +0.53%) YouTube, followed by a big analyst upgrade.
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Sirius XM gets an endorsement from Google and Wall Street On April 22, Sirius XM announced a new partnership with YouTube. According to the press release, starting this fall, advertisers will be able to buy audio-focused YouTube inventory through SiriusXM Media, SiriusXM's adtech platform. The deal prompted a rise in the stock, given that YouTube's massive reach could drive strong advertising growth for SiriusXM's advertising solutions segment.
Sell-side analyst Barton Crockett at Rosenblatt became a believer on the heels of the deal, raising his price target on shares from $24 to $46, while lifting his rating on shares from "neutral" to "buy."
As justification for the big move, Crockett said in a note that the YouTube deal was a big endorsement of Sirius' advertising technology. Additionally, with the upcoming SpaceX IPO and Amazon's (AMZN 1.24%) recently announced acquisition of Globalstar (GSAT +0.11%), Crockett believes that investors will appreciate the value of Sirius' S-band satellite-to-device spectrum.
Therefore, while the company's subscription business appears to be stagnating or declining, the newer ad business could be a growth driver, and the spectrum assets may act as catalysts for a valuation "re-rating," in Crockett's view.
Sirius also reported first-quarter earnings on the last day of the month that beat expectations on both the top and bottom lines. Revenue grew 1%, an improvement from flat growth in the prior quarter, with decelerating subscriber losses, suggesting subscriber declines may eventually level out or even return to growth. Meanwhile, thanks to prudent cost cuts, adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) grew 6%, and earnings per share grew 22% to $0.72. Free cash flow more than tripled, due to higher profitability and lower satellite capital expenditures.
Image source: Getty Images.
Does Sirius XM have a longer run ahead? While SiriusXM stock has appreciated 35% this year, it is still well below its highs and about 50% below its stock price level last seen as recently as the beginning of 2024.
Investors don't really know the financial impact of the YouTube deal, and it's unclear exactly what additional value Sirius can extract from its spectrum holdings. However, it is certainly a positive sign that Alphabet, a digital ad juggernaut, has endorsed the company's advertising capabilities, and at least one Wall Street analyst has become a believer in the company's turnaround.
Warren Buffett built Berkshire Hathaway by paying reasonable prices for durable cash flows, and three of his current bets still trade below $30 a share. With Greg Abel sitting on a record cash pile, the sub-$30 aisle is where value hunters are scanning for the kind of brand-heavy, cash-generative franchises Omaha tends to favor when sentiment sours.
Here are five stocks under $30 that fit the Buffett template: three Berkshire already owns, plus two Abel could plausibly add to the book.
Kraft Heinz (NASDAQ: KHC) Kraft Heinz (NASDAQ:KHC | KHC Price Prediction) owns Heinz, Philadelphia, Lunchables, and Primal Kitchen. Shares recently traded at $23.96, paying a 6.76% dividend yield at a forward multiple near 12. Q1 adjusted EPS hit $0.58 against a $0.5027 consensus, the fourth consecutive beat, while free cash flow jumped 58.9% to $766M. CEO Steve Cahillane’s $600M reinvestment plan anchors the turnaround case. The risk: organic net sales are guided down 1.5% to 3.5% on SNAP and private-label pressure. With analyst targets clustered near $23.87, the value here lives in the dividend.
Sirius XM (NASDAQ: SIRI) Sirius XM (NASDAQ:SIRI) operates satellite radio and Pandora and just locked in an exclusive U.S. audio ad partnership covering YouTube’s roughly 255 million monthly listeners. Shares sit near $27.10, up 37.2% year to date, on a trailing P/E of 11 and forward P/E of 9. The dividend yields 4.04% at $0.27 quarterly. Q1 churn hit a record-low 1.5% and podcast revenue grew 37%, with full-year free cash flow guided to $1.35B. The bear note: self-pay subscribers are still shrinking. Wall Street targets average $28.08, leaving the cash return as the main draw.
Liberty Latin America (NASDAQ: LILA) Liberty Latin America (NASDAQ:LILA) runs broadband and mobile networks across the Caribbean and Latin America under Flow, Liberty, and Más Móvil. Shares recently sat at $7.63, up 63.38% over the past year. Q1 operating income rose 13%, the company added 50,200 postpaid subscribers, and CEO Balan Nair announced plans to distribute $500M in 9% preferred stock. Berkshire still holds the position. The risk is real: net leverage sits at 4.5x and Hurricane Melissa weighed on Caribbean revenue. Analyst targets at $11.90 imply meaningful upside if recovery holds.
Nu Holdings (NYSE: NU) Nu Holdings (NYSE:NU), Latin America’s largest digital bank, sits outside Berkshire’s current portfolio yet matches the profitable, scale-driven financial profile Abel has flagged interest in. It’s also formerly a Berkshire Hathaway holding. Shares trade near $13.80 at a trailing P/E of 23. Full-year revenue grew 42.06% to $15.77B, net income climbed 45.61% to $2.87B, and Q4 return on equity hit 33%. Nubank also secured conditional OCC approval for a U.S. national bank. Risks include Brazilian macro exposure and $4.20B in expected credit losses. Consensus target sits at $19.87, well above the current quote.
Pfizer (NYSE: PFE) Pfizer (NYSE:PFE) is another non-Berkshire name that fits the Buffett-style screen Abel may inherit. Shares recently traded at $25.68, up 21.96% over the past year, pairing a 6.6% yield with a forward P/E of 9. The non-COVID portfolio grew 9% operationally in Q4, with Vyndaqel, Eliquis, and Abrysvo all posting double-digit gains. Q4 adjusted EPS came in at $0.66 versus a $0.57 consensus. Risks include a $1.5B loss-of-exclusivity headwind plus Most-Favored-Nation pricing uncertainty. Consensus target stands at $29.11.
A low share price by itself is never a thesis. Each of these names carries a specific risk that could undo the cheap headline multiple, from food-volume erosion to Brazilian macro to drug-pricing reform. Treat this list as a starting point for your own diligence, not a substitute for it.
Resources Investor Relations Journalists Agencies Client Login Send a Release News Products Contact , /PRNewswire/ -- SiriusXM (NASDAQ: SIRI) announced Zac Coughlin, Chief Financial Officer, will present on May 20, 2026 at 10:00 a.m. ET at the J.P. Morgan Global Technology, Media and Communications Conference in Boston, Massachusetts. A webcast of the presentation will be available on the SiriusXM Investor Relations website at https://investor.siriusxm.com.
About Sirius XM Holdings Inc.
SiriusXM is the leading audio entertainment company in North America with a portfolio of audio businesses including its flagship subscription entertainment service SiriusXM; the ad-supported and premium music streaming services of Pandora; an expansive podcast network; and a suite of business and advertising solutions. Reaching a combined monthly audience of approximately 255 million listeners, SiriusXM offers a broad range of content for listeners everywhere they tune in with a diverse mix of live, on-demand, and curated programming across music, talk, news, and sports. For more about SiriusXM, please go to: www.siriusxm.com.
Source: SiriusXM
Investor contact:
Jennifer DiGrazia
646.784.6275
[email protected]
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
When the high-flyers of the Nasdaq 100 wobble and valuations across mega-cap tech look stretched, money tends to hunt for shelter. Stocks under $30 that throw off real cash and pay a real dividend become genuinely interesting again, especially the rare ones that operate without direct competition. Right now, one name fits that description almost too neatly, and Wall Street insiders have been quietly loading up.
With that in mind, here is one stock trading under $30 that looks like a textbook defensive value setup heading into the back half of 2026.
Sirius XM (NASDAQ: SIRI) Sirius XM (NASDAQ:SIRI | SIRI Price Prediction) is the only licensed satellite radio operator in the United States and also owns Pandora and a growing podcast network.
Shares closed at $29.63 on May 26, 2026, kissing the under-$30 ceiling and sitting just 7% from a 52-week high of $30.11. For retail investors, that means you can still buy a full share for the price of dinner, while collecting an income stream that bigger, pricier names cannot match. The stock has quietly run 51.53% year to date, outpacing the QQQ’s 18.88% YTD gain while big tech digests its hangover.
The fundamentals back the move. SIRI trades at a trailing P/E of 12 and a forward P/E of 9, with a historically cheap valuation for a business throwing off this kind of cash. Management reaffirmed 2026 free cash flow guidance of roughly $1.35 billion, climbing to a $1.5 billion objective in 2027. The quarterly dividend sits at $0.27 per share, good for a 3.73% yield. Wall Street’s consensus target is $28, slightly below the current quote, but the mix skews toward patience: 1 Strong Buy, 3 Buy, 6 Hold, 3 Sell, and 1 Strong Sell.
The bull case is straightforward. Sirius XM is a legal monopoly in satellite radio with a subscription-based revenue base that holds up when consumers tighten their belts. Self-pay net losses narrowed by 192,000 versus Q1 2025, churn hit a first-quarter record low of 1.5%, and ARPU rose to $14.99. The landmark exclusive U.S. advertising partnership with YouTube, which begins this fall and reaches approximately 255 million monthly listeners, hands the company a brand-new ad engine. Insiders agree: on February 27, 2026, director Gregory Maffei picked up 66,862 shares, alongside coordinated buying from the CEO, CFO, COO, and Chief Legal Officer.
The risk worth respecting is the subscriber story. Q1 2026 still showed net losses of 148,000, Pandora monthly active users slipped 5% YoY to 40.1 million, and the quarter missed both EPS and revenue estimates, with EPS of $0.72 against a $0.78 consensus. Streaming competition from Spotify and Apple Music is real, and new-car sales drive a lot of acquisition. Even so, the cash flow trajectory, exclusive content slate, and ad-tech catalyst more than offset a slow bleed in legacy subscribers.
For a high-yield, free-cash-flow-rich monopoly trading under $30 while tech multiples reset, Sirius XM looks like the kind of defensive setup that rewards patience.
Use this as a starting point, dig into the filings, weigh the risks against your own time horizon, and decide whether the thesis fits your portfolio before acting.
With major indices flirting with historically stretched valuations and inflation still nibbling at household budgets, dividend-paying stocks under $40 are getting a fresh look from retail investors who want income without overpaying for it. A sub-$40 entry point can be the difference between a position that earns its keep and one that locks up capital. While the broader market grapples with historically stretched valuations and creeping inflation, satellite radio giant Sirius XM Holdings presents a masterclass in defensive, highly predictable cash generation.
With that in mind, here is one stock trading under $40 that pairs a legally protected monopoly with a yield north of 4% and a clear path to higher free cash flow.
Sirius XM Holdings (NASDAQ: SIRI) Sirius XM (NASDAQ:SIRI | SIRI Price Prediction) is the sole satellite radio provider in the United States, pairing subscription audio with the Pandora streaming and podcast business. The FCC-licensed satellite broadcast license is the kind of regulatory moat that public-market investors rarely get to buy at a single-digit forward multiple.
Shares closed at $29.87 on May 28, 2026, comfortably inside a retail price band yet up 52.75% year to date and 39.82% over the past year. For a retail investor, that means the YouTube partnership rerating is underway, yet the stock still trades below the $34 Guggenheim target and well under Rosenblatt’s $45 price target.
The fundamentals back up the setup. Sirius XM trades at a trailing PE of 13 and a forward PE of 10, with a PEG ratio of 0.657 and a dividend yield of 3.64% on the trailing basis (the run-rate yield sits above 4% against the recent filing price). The $0.27 quarterly dividend annualizes to $1.08 per share, a payout that consumed only 27% of free cash flow last cycle. Analyst consensus skews to a $28 average target, but the more aggressive bull cases reach $45.
The bull case is straightforward. Q1 2026 delivered EPS of $0.72, net income up 20% YoY to $245 million, operating income up 24.38%, and free cash flow that tripled to $171 million. Self-pay churn fell to 1.5%, the lowest first-quarter reading on record. Management reaffirmed 2026 guidance of roughly $8.50 billion in revenue, $2.60 billion in adjusted EBITDA, and $1.35 billion in free cash flow, with a 2027 free cash flow target of $1.5 billion. CEO Jennifer Witz said the company “significantly enhanced our advertising capabilities through our landmark partnership with YouTube”, a deal that gives SiriusXM Media exclusive U.S. ad representation for YouTube’s audio inventory reaching 255 million monthly listeners starting fall 2026. Podcast revenue grew 37% YoY in the quarter, and Berkshire Hathaway’s stake adds a credibility stamp few sub-$40 dividend names can match.
The key risk that cuts against the thesis: the subscriber base is still shrinking. Q1 2026 saw total net subscriber losses of 148,000, Pandora monthly active users fell 5% YoY to 40.1 million, and ad-supported listener hours declined 6% YoY. Net leverage at 3.6x is elevated, and reported early-stage merger talks with iHeartMedia introduce execution risk that could complicate the deleveraging path. Yet the trend lines on churn, ARPU, and free cash flow point the right way.
For patient investors hunting a regulator-protected cash compounder under $40, Sirius XM fits the brief.
The Bottom Line A low share price alone is never a reason to buy or avoid a stock, and Sirius XM still carries a debt load, ad-market sensitivity, and a slow-bleeding subscriber count that demand scrutiny. Use this as a starting point for your own research, weigh the YouTube catalyst and the dividend coverage against the leverage and M&A overhang, and decide whether the moat justifies the position size in your portfolio.
In the latest trading session, Sirius XM (SIRI - Free Report) closed at $27.01, marking a -2.81% move from the previous day. The stock fell short of the S&P 500, which registered a loss of 2.65% for the day. Meanwhile, the Dow experienced a drop of 1.35%, and the technology-dominated Nasdaq saw a decrease of 4.18%.
The satellite radio company's shares have seen an increase of 3.89% over the last month, surpassing the Consumer Discretionary sector's loss of 0.12% and falling behind the S&P 500's gain of 5.47%.
Market participants will be closely following the financial results of Sirius XM in its upcoming release. On that day, Sirius XM is projected to report earnings of $0.78 per share, which would represent year-over-year growth of 36.84%. Alongside, our most recent consensus estimate is anticipating revenue of $2.14 billion, indicating a 0.11% upward movement from the same quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.1 per share and a revenue of $8.56 billion, representing changes of -2.82% and +0.02%, respectively, from the prior year.
Any recent changes to analyst estimates for Sirius XM should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Sirius XM is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Sirius XM has a Forward P/E ratio of 8.95 right now. This indicates a discount in contrast to its industry's Forward P/E of 14.25.
It is also worth noting that SIRI currently has a PEG ratio of 0.6. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As of the close of trade yesterday, the Broadcast Radio and Television industry held an average PEG ratio of 1.04.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 152, putting it in the bottom 38% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
, /PRNewswire/ -- Sirius XM Holdings Inc. (NASD: SIRI) will replace Masimo Corp. (NASD: MASI) in the S&P MidCap 400 effective prior to the opening of trading on Thursday, June 11. S&P 500 & 100 constituent Danaher Corp. (NYSE: DHR) is acquiring Masimo in a deal expected to be completed soon pending final conditions.
Following is a summary of the changes that will take place prior to the open of trading on the effective date:
Effective
Date
Index
Name
Action
Company Name
Ticker
GICS Sector
June 11, 2026
S&P MidCap 400
Addition
Sirius XM Holdings
SIRI
Communication Services
June 11, 2026
S&P MidCap 400
Deletion
Masimo
MASI
Health Care
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There are still bargains to be had, even in a market that continues to climb the proverbial wall of worry. Shares of Sirius XM (SIRI 0.25%), Royal Caribbean (RCL +2.23%), and Upbound (UPBD +1.88%) are trading at low earnings multiples, and that's just the beginning.
The three very different businesses are growing, though at different rates. It also doesn't take a lot to get started. Even your next $1,000 can go a long way with these three dirt cheap stocks. Let's take a closer look.
Image source: Getty Images.
1. Sirius XM If you want to subscribe to satellite radio, you really only have one choice. Sirius XM has had the market cornered in the premium niche since the combination of the only two providers 18 years ago. Today, Sirius XM is a media stock with a massive audience, an equally substantial quarterly dividend, and a popular platform that is starting to turn things around.
Sirius XM entertains 33 million total subscribers. It's largely drivers paying for coast-to-coast coverage of commercial-free music and ad-supported talk, news, sports, and comedy content. The business has slowed in recent years. The churn rate remains historically low, but younger drivers aren't flocking to the service. Between the emergence of the connected car and the growing cost of auto ownership, subscribing to Howard Stern and more isn't as compelling these days.
Today's Change
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-0.25
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-0.07
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27.52
After three years of modestly declining revenue, there are signs of stability. Sirius XM has posted back-to-back quarters of marginal year-over-year increases. It's not much, but it's progress.
Even when sales were inching the wrong way, Sirius XM was easily topping $1 billion in free cash flow. It's highly profitable, trading for less than nine times forward earnings. Sirius XM has also been aggressively returning money to its shareholders through stock buybacks and dividend distributions. It's currently yielding almost 4%.
I'm not the only one who sees the value in Sirius XM. Berkshire Hathaway (BRKA +0.76%) (BRKB +0.55%) has been building up its stake in the past three years. It now owns more than 37% of the company. The near-term prospects may be fuzzy with gas prices rising and consumer confidence waning, but like its own platform, there's always something good if you make your way around the dial.
Today's Change
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2. Royal Caribbean Among the three leading cruise line operators, Royal Caribbean is the priciest. It's still cheap on an absolute basis. The cruiser is fetching 15.7 times forward earnings. It offers a recently raised quarterly dividend yielding 1.8%.
Royal Caribbean has earned its premium position in the industry through superior growth and margins. Cruise line stocks are cheap. Royal Caribbean is the one worth paying for. It sees revenue and earnings rising 11% this year. Bookings remain strong -- at least as of its first-quarter update at the end of April.
Cruising remains a great value for travelers, even if it remains largely undiscovered. Cruise lines make up just 2% of the travel and tourism market. If you want a piece of this growing travel sector, you might as well buy the most efficient operator.
Today's Change
(
1.88
%) $
0.35
Current Price
$
18.94
3. Upbound Rent-A-Center has had a new name for the past few years, Upbound. The chain, with more than 1,700 retail locations, offers furniture, appliances, and consumer electronics on a lease-to-own basis. There's a market for folks who can't afford home basics and have less-than-perfect credit, and Upbound is a leader. Upbound also offers its lease-to-own technology to other retailers through its business, Acima. A third revenue stream is a popular budgeting app called Brigit.
Revenue is growing for the third year in a row, based on its full-year guidance of $4.7 billion to $4.95 billion. It expects to generate a profit between $4.00 and $4.35 per share, pricing the stock at less than five times forward earnings. There's also the chunkiest dividend yield on this list of 8.3%. Upbound? With a platform built for the growing rental community and diversified revenue streams, maybe its new moniker is a mandate for the stock itself.
