Sirius XM Radio Inc. (SIRI): Today's Featured Services Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Sirius XM Radio ( SIRI) pushed the Services sector lower today making it today's featured Services laggard. The sector as a whole was unchanged today. By the end of trading, Sirius XM Radio fell 6 cents (-2.2%) to $2.70 on average volume. Throughout the day, 57.5 million shares of Sirius XM Radio exchanged hands as compared to its average daily volume of 72.4 million shares. The stock ranged in price between $2.69-$2.78 after having opened the day at $2.75 as compared to the previous trading day's close of $2.76. Other companies within the Services sector that declined today were: Inuvo ( INUV), down 13.8%, NTN Buzztime ( NTN), down 10.3%, QKL Stores ( QKLS), down 10.2%, and Globus Maritime ( GLBS), down 9.3%.
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Sirius XM Radio Inc. provides satellite radio services in the United States and Canada. The company broadcasts approximately 135 channels, including music, sports, entertainment, comedy, talk, news, traffic, and weather channels on subscription fee basis through two satellite radio systems. Sirius XM Radio has a market cap of $14.48 billion and is part of the media industry. The company has a P/E ratio of 5.5, below the S&P 500 P/E ratio of 17.7. Shares are up 51.6% year to date as of the close of trading on Monday. Currently there are seven analysts that rate Sirius XM Radio a buy, one analyst rates it a sell, and three rate it a hold.

TheStreet Ratings rates Sirius XM Radio as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth, notable return on equity, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, Grupo Casa Saba S.A.B. de C.V ( SAB), up 33.3%, LodgeNet Interactive Corporation ( LNET), up 17.7%, SearchMedia Holdings ( IDI), up 15.4%, and Seanergy Maritime Holdings ( SHIP), up 14.9%, were all gainers within the services sector with J.C. Penney ( JCP) being today's featured services sector leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the services sector could consider iShares Dow Jones US Cons Services ( IYC) while those bearish on the services sector could consider ProShares Ultra Short Consumer Sers ( SCC).

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