This ’Boring’ Stock Could Explode Before October 30 - Don’t Miss It
While crypto dominates headlines, this traditional stock quietly positions for massive gains
The Stealth Play Wall Street's Ignoring
Forget the flashy tech names - sometimes the biggest opportunities hide in plain sight. This established player's fundamentals scream undervalued while analysts sleepwalk through earnings season.
Institutional Money's Quiet Accumulation
Major funds have been building positions for months, betting the October catalyst will trigger a revaluation that leaves retail investors scrambling. The setup mirrors classic pre-breakout patterns that made fortunes for early movers.
October 30 Deadline Looms
The clock's ticking on what could be the last entry point before quarterly results reveal what insiders already know. Sometimes the most exciting plays wear the dullest disguises - just ask anyone who bought Bitcoin at $100.
Image source: Getty Images.
Earning your respect
Sirius XM's transformation from a high-flying growth investment to a stodgy value stock is easier to explain than to live through. The arrival of the connected car made it easy for anyone with a smartphone to seamlessly stream audio app content through their car stereo system. The pandemic kept our cars parked for too long, diminishing the value of a premium radio subscription. Tastes also evolved coming out of the shelter-in-place phase of the COVID-19 crisis, and Sirius XM failed to court young audiences by clinging to its more seasoned talent.
There are still some pretty good reasons to warm up to this satellite radio monopoly, and that should be evident when Sirius XM reports its third-quarter results on the morning of Oct. 30. Sirius XM is still generating 10-figure annual free cash FLOW and putting that money to work through buybacks and a dividend currently yielding 4.9%. The shares are trading for under 8 times this year's projected earnings, a rare single-digit multiple for a consumer-facing titan with a still-healthy 33 million subscriber base.
What can Sirius XM offer on Oct. 30 to shift out of reverse on a stock that is down 14% over the past year? It can come through with an earnings beat after falling short on the bottom line in back-to-back quarters. Return to revenue growth. Maybe reiterate the record $1.5 billion in free cash Flow it's modeling for 2027. It's already sprucing up its programming with fresh voices, but a little more can't hurt. Sirius XM could have a lot to say this earnings season, and luckily for investors, it has the means to amplify its broadcasts.
