Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link. Trade-Ideas LLC identified Sirius XM Holdings ( SIRI) as a pre-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Sirius XM Holdings as such a stock due to the following factors:
- SIRI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $301.8 million.
- SIRI traded 175,465 shares today in the pre-market hours as of 8:25 AM.
- SIRI is up 3.8% today from Friday's close.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in SIRI with the Ticky from Trade-Ideas. See the FREE profile for SIRI NOW at Trade-Ideas More details on SIRI: Sirius XM Holdings Inc. provides satellite radio services in the United States and Canada. SIRI has a PE ratio of 56.5. Currently there are 6 analysts that rate Sirius XM Holdings a buy, 1 analyst rates it a sell, and 3 rate it a hold. The average volume for Sirius XM Holdings has been 77.3 million shares per day over the past 30 days. Sirius XM has a market cap of $20.0 billion and is part of the services sector and media industry. The stock has a beta of 1.62 and a short float of 7.2% with 2.41 days to cover. Shares are down 8.3% year-to-date as of the close of trading on Friday. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. TheStreetRatings.com Analysis: TheStreet Quant Ratings rates Sirius XM Holdings as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Highlights from the ratings report include:
- SIRI's revenue growth has slightly outpaced the industry average of 4.0%. Since the same quarter one year prior, revenues rose by 12.1%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Net operating cash flow has increased to $358.58 million or 22.28% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -11.65%.
- The gross profit margin for SIRIUS XM HOLDINGS INC is rather high; currently it is at 60.37%. Regardless of SIRI's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 6.51% trails the industry average.
- SIRIUS XM HOLDINGS INC's earnings per share declined by 50.0% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, SIRIUS XM HOLDINGS INC reported lower earnings of $0.06 versus $0.53 in the prior year. This year, the market expects an improvement in earnings ($0.09 versus $0.06).
- Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- You can view the full Sirius XM Holdings Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.