Yahoo Finance At US$07.06, Is It Time To Buy Sirius XM Holdings Inc (NASDAQ:SIRI)?
Let’s talk about the popular Sirius XM Holdings Inc (NASDAQ:SIRI). The company’s shares saw a double-digit share price rise of over 10% in the past couple of months on the NasdaqGS. With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, could the stock still be trading at a relatively cheap price? Let’s take a look at Sirius XM Holdings’s outlook and value based on the most recent financial data to see if the opportunity still exists. See our latest analysis for Sirius XM Holdings
Is Sirius XM Holdings still cheap?
The stock is currently trading at US$7.06 on the share market, which means it is overvalued by 42.54% compared to my intrinsic value of $4.95. This means that the opportunity to buy Sirius XM Holdings at a good price has disappeared! If you like the stock, you may want to keep an eye out for a potential price decline in the future. Given that Sirius XM Holdings’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.
What kind of growth will Sirius XM Holdings generate?
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. Sirius XM Holdings’s earnings over the next few years are expected to increase by 76.54%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.
What this means for you:
Are you a shareholder? It seems like the market has well and truly priced in SIRI’s positive outlook, with shares trading above its fair value. However, this brings up another question – is now the right time to sell? If you believe SIRI should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable. But before you make this decision, take a look at whether its fundamentals have changed.
Are you a potential investor? If you’ve been keeping an eye on SIRI for a while, now may not be the best time to enter into the stock. The price has surpassed its true value, which means there’s no upside from mispricing. However, the optimistic prospect is encouraging for SIRI, which means it’s worth diving deeper into other factors in order to take advantage of the next price drop.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Sirius XM Holdings. You can find everything you need to know about Sirius XM Holdings in the latest infographic research report. If you are no longer interested in Sirius XM Holdings, you can use our free platform to see my list of over 50 other stocks with a high growth potential.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
