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Is Sirius XM (SIRI) Stock Undervalued Right Now?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company value investors might notice is Sirius XM (SIRI - Free Report) . SIRI is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value.

Investors should also note that SIRI holds a PEG ratio of 0.75. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. SIRI's industry has an average PEG of 1.91 right now. Over the past 52 weeks, SIRI's PEG has been as high as 2.70 and as low as 0.75, with a median of 1.36.

Finally, we should also recognize that SIRI has a P/CF ratio of 4.98. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 11.90. SIRI's P/CF has been as high as 11.86 and as low as 4.98, with a median of 8.48, all within the past year.

These are just a handful of the figures considered in Sirius XM's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that SIRI is an impressive value stock right now.


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