Sirius XM emergers as one best Stocks with 386% YTD Growth
While Tech stocks have remained darling of investors in the first half of 2024, a number of stocks from various sectors emerged during the second half of the year. Stocks for various sectors such as Communications services, Utilities, Defence, and Energy sector have emerged as the leading performers in the market. Sirius XM Holdings, a communications service provider, emerged as one of the best stocks of 2024 as on YTD basis with 386% rise in its share price.
The top five stocks on YTD basis as on 31 oct comprised of companies which have delivered 86%-386% returns since the beginning of the year. NVIDIA is the only technology firm in the list to retain its place in the top five stocks of 2024. NVIDIA has gained 176% during the year. Constellation Energy Corp was the third stock to gain over 100% in year with 126% as on October end.
Nasdaq listed Sirius XM has gained momentum since the beginning of the second half of the year. The stock outperformed the US market by far during Jul-Sep quarter with unmatched 721% price gains as it share price soared from $2.8 to $22.6 by end of October. The stock continued its momentum in the month of October. Sirius XM gained 18% in October, highest amongst the top YTD performers. NVIDIA managed to gain 13% in the month but Constellation fell by 1%.
What are the factors behind Siriux XM’s growth?
Strong Subscriber base & Advertising Revenue: Company continues to maintain subscriber base of over 34 million customers which has led to continued flow of subscription revenues. Sirius XM has also benefited from increased advertising revenue on Y-o-Y basis in 2024.
Connected Vehicle Services: The company’s penetration in the automotive sector remains significant, with 75% of new cars sold in North America equipped with Sirius XM services.
Content Expansion: Acquisition of Pandora allowed Sirius XM to broaden its content offerings and tap into the growing podcast and streaming markets.
- Financial Performance:
- Q3 was a lacklustre performance for Sirius XM as it witnessed decline on both Y-o-Y and Q-o-Q basis.
- Sirius witnessed decline in tis Q3 2-24 Revenues by 4% on Y-o-Y basis. Gross profit for the same period also declined by 6% on Y-o-Y basis.
- Company also reported dramatic fall in the EPS from 0.69 in Q3 2023 to -7.24 in Q3 2024.