6 Green Days In A Row: Sirius XM Stock Is Up 23%

SIRIYTD+72.4%SPYYTD+13.0%XLCYTD-10.3%
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Sirius XM (SIRI) stock is on a 6-day winning streak, up 22.6% since the run began. That added about $2.1 billion to the company’s market value, which now stands at about $11.3 billion. The stock closed at $33.40 on Wednesday, November 4, its highest close of the past year.

Image from Pixabay

 
The Streak Next To The S&P 500

Returns for SIRI and the S&P 500 over the streak and the periods around it, all ending Wednesday, November 4 and including dividends:
 

Return Period SIRI S&P 500
1 Day 8.4% 1.6%
6 Days (Current Streak) 22.6% -0.4%
1 Month (21 Trading Days) 26.7% -1.6%
3 Months (63 Trading Days) 12.8% 0.0%
Year To Date 72.4% 13.4%
1 Year (252 Trading Days) 59.5% 13.5%

A Stock-Specific Run, Or A Market Move?

Over the same 6 trading days, the S&P 500 returned -0.4% including dividends, so the run is mostly Sirius XM’s own story rather than the market’s. Over the past three months the stock is up 12.8%, a window that includes the streak; over the other 57 sessions of that window it was down 8.0%.

Is The Business Keeping Up With The Stock?

On the fundamentals, revenue grew 0.5% over the last twelve months, against a median of 9.3% for S&P 500 Communication Services stocks; its operating margin is 22.4%, versus a median of 20.9%; and the stock trades at 12.5 times trailing earnings against a median of 16.8. The read is mixed: margins above the median and a multiple below the median on one side, revenue growth below the median on the other.

If you are looking for strength with more behind it than a hot tape, our Guidance Momentum screen surfaces the names where management raised its own outlook.

One Hot Stock Is A Story. Thirty Sound Ones Are A Strategy

A streak like this earns a place on your watchlist, and it also earns a question: how much of your outcome do you want depending on one company keeping this up?

The Trefis High Quality (HQ) Portfolio answers it with breadth: roughly 30 businesses picked for consistent cash generation, strong margins, and balance-sheet strength, sized and rebalanced by rules. It has a track record of outpacing a benchmark that combines the S&P 500, the S&P MidCap 400, and the Russell 2000. Follow the story; invest in the strategy.