8 Stocks Under $10 Analysts Love - 4 of 8

#4 - Sirius XM (NASDAQ:SIRI)

Sirius XM (NASDAQ: SIRI) - Investing in a company that has a base of 34 million subscribers and has delivered positive results to shareholders for 10 consecutive years might seem like an obvious choice. However, you’ll have to be a bit contrarian to buy and hold Sirius XM stock, which is one the most shorted stocks on the NASDAQ exchange. There are speculators who are convinced that the technology behind satellite radio is on the way out. But even as the connected car is becoming a reality, Sirius continues to grow its subscriber base. And although the rate of that growth is slowing, it is still growing. There are other reasons to like the stock as well. To begin with, it offers a dividend. And while SIRI’s 0.8% dividend is not much to talk about right now, it’s been growing over the last couple of years, which is an indication that Sirius XM does not expect to be seeing declining revenue in the near future. The company recently completed a merger with Pandora. While an acquisition of this size will certainly choke profits in the short-term, the company is now well positioned to become a player in the streaming audio category, an area that they have struggled to enter. Plus, analysts are convinced that the two companies will be stronger together (i.e. more profitable) and those profits will either be re-invested in more acquisitions or returned to shareholders either with increasing dividend yields or through stock buybacks.

About Sirius XM

Current Price

$23.08

Consensus Rating

Reduce

Ratings Breakdown

4 Buy Ratings, 5 Hold Ratings, 5 Sell Ratings.

Consensus Price Target

$27.58 (19.5% Upside)