Could SiriusXM Be the Hidden gem That Boosts Your Portfolio?
To say that SiriusXM (NASDAQ: SIRI) has underperformed the stock market would be a big understatement. The stock declined by nearly 60% in 2024 -- a year when the S&P 500 increased by more than 20%. While the stock is up 5% this year, it's mainly due to a sharp rally in February when it was revealed that Warren Buffett's Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) had increased its stake to about 35%. Since the February peak, it is down by 11%.Having said all that, SiriusXM simply looks too cheap to ignore at this point. The stock trades for a single-digit multiple of expected 2025 earnings despite excellent profitability and several reasons to believe its earnings could grow significantly in the coming years.First, there are some valid reasons behind SiriusXM's poor stock performance. For one thing, it has produced no substantial revenue growth since 2021, and its subscriber base peaked in 2019. The company actually expects revenue to slightly fall in 2025.Continue reading
To say that SiriusXM (NASDAQ: SIRI) has underperformed the stock market would be a big understatement. The stock declined by nearly 60% in 2024 -- a year when the S&P 500 increased by more than 20%. While the stock is up 5% this year, it's mainly due to a sharp rally in February when it was revealed that Warren Buffett's Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) had increased its stake to about 35%. Since the February peak, it is down by 11%.
Having said all that, SiriusXM simply looks too cheap to ignore at this point. The stock trades for a single-digit multiple of expected 2025 earnings despite excellent profitability and several reasons to believe its earnings could grow significantly in the coming years.
First, there are some valid reasons behind SiriusXM's poor stock performance. For one thing, it has produced no substantial revenue growth since 2021, and its subscriber base peaked in 2019. The company actually expects revenue to slightly fall in 2025.
