The last couple weeks of springtime have seen the market itself spring to life. There are investing opportunities in both stocks that have fallen out of favor and some popular growth stocks.
Some of my favorite stocks right now are Sirius XM Holdings (SIRI), Nintendo (NTDOY 0.62%), and Roku (ROKU -1.57%). They are well positioned to keep rising from here, armed with some obvious and some not-so-obvious bullish catalysts. Let's take a look.
1. Sirius XM Holdings
Don't let the weak stock chart facade dissuade you from taking a closer look at the country's satellite radio monopoly. Sirius XM stock was cut in half last year, and it still hasn't bounced back in 2025. There are some solid reasons for the media stock's meandering ways, but there are also a compelling valuation, chunky yield, and potential tailwinds to consider.
Let's start with the negatives. It's been more than a decade since Sirius XM posted double-digit top-line growth, and revenue is now declining slightly for the third year in a row. Auto sales are the funnel that leads to new subscriptions, and that market has been weak. Young drivers are also turning to streaming smartphone apps for in-car entertainment, bypassing Sirius XM's premium offering. If this looks pretty bleak, turn the corner. Sirius XM may be about to do exactly that a lot sooner than the market thinks.
Image source: Getty Images.
It was easy to see why Sirius XM was struggling coming out of the pandemic. Folks were working from home, so it was easy to justify sidestepping in-car subscriptions for a product that eases daily commutes. This is starting to change, with more and more companies calling employees back to the office. Gas prices are low, down 12% across the country over the past year and 22% lower than they were three years ago. This should be an incentive to get folks driving more, increasing the value proposition of coast-to-coast coverage of Sirius XM's premium content. Meanwhile, if financing rates start to ease up and the economic outlook improves, there's going to be a lot of pent-up demand for new vehicle sales with factory-installed Sirius XM satellite receivers.
The valuation is better than you might think for a company on the cusp of turning things around. You can buy Sirius XM stock for less than 8 times this year's projected earnings. If the recovery takes some time, it literally pays to be patient. The stock's 4.9% yield is a lot better than both the market average and what sideline sitters are generating in money market yields.
Don't take it from me, though. Berkshire Hathaway (BRK.A 0.59%) (BRK.B 0.53%) has boosted its stake three times since the fall of last year. Warren Buffett's holding company now owns more than a third of Sirius XM. I'm happy to own a much smaller chunk of the company.
2. Nintendo
Let's play a different game with this one. Nintendo isn't out of favor like Sirius XM. Shares of the Japanese video game pioneer hit another all-time high this month. The market is buzzing about next week's rollout of the Switch 2, Nintendo's first new gaming system in more than eight years.
This is a pretty big deal. Revenue and earnings for Nintendo tend to triple if not quadruple in the three to four years after a major new console comes out. The business itself is already well ahead of where Nintendo was when the original Switch hit the market in March of 2017. Nintendo's multigenerational appeal continues to widen. Nintendo has successfully jump-started its presence as a theatrical property, and it now has a presence with a dedicated land in three of the world's largest theme parks. Nintendo is richly priced based on recent financials, but the future is what is fueling renewed interest here. With demand for Switch 2 outstripping supply, the next couple of years should treat investors to stellar growth.
3. Roku
There's no sugarcoating the ugly multiyear stock chart here. Roku shares are trading 85% lower than their peak in the summer of 2021. That doesn't mean that Roku isn't in a much better place now. The company behind North America's leading operating system for TV streaming has never entertained an audience this large with engagement levels perpetually rising.
The 16% revenue growth it posted in its latest results extends its streak of double-digit gains to eight quarters. Losses continue to narrow, and Roku is forecasting a return to profitability in the second half of this year. With time spent on the platform having risen 16% over the past year, it has a firm hold on its viewers, who spend hours a day channeling their TV consumption through Roku's landing page. Its guidance for the second quarter did come in a bit light, but it's still stretched its streak of double-digit revenue growth to nine quarters.
