Sirius XM (SIRI -1.55%) has interested and frustrated investors in recent years. It holds a monopoly on satellite radio in the U.S., and the stock's dividend yield is far above S&P 500 averages.
Unfortunately, despite Berkshire Hathaway holding over 37% of its shares, the stock's value has slid over the last five years, and competition from internet-based streaming services has limited subscriber growth.
Still, one might wonder whether it is time to buy Sirius XM stock amid the possibility of further recovery when it reports second-quarter earnings on July 30.
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This is a difficult question, as reactions to earnings reports are difficult to predict before the fact. Investors will probably like the fact that it rallied nearly 50% in the first half of 2026.
However, Sirius XM has long been a slow-growth business, making it less likely the report will spark more buying in the stock. In the first quarter of 2026, revenue grew by 1% year over year after pulling back by 2% during 2025.
Nonetheless, net income surged 20% in Q1, after it turned profitable in 2025. Looking forward, analysts forecast flat annual revenue growth for Q2 along with a 23% profit increase over the same period. Amid that improvement, investors can buy the stock for 12 times trailing earnings.
NASDAQ: SIRI
Key Data Points
Also, investors earn $1.08 per share annually in cash payouts while they wait for a stock recovery. That amounts to a dividend yield of 3.6%, far above the S&P 500's 1.1% average yield.
Such conditions indicate that investors should buy Sirius XM stock before July 30, but only if they are buying it for income.
Indeed, Sirius XM has a low earnings multiple and a generous dividend yield. Unfortunately, the flat revenue growth and low P/E ratio make it unlikely the quarterly report will point to any further growth catalysts.
Still, Sirius XM is a Berkshire Hathaway-owned stock selling at a low P/E ratio and paying a huge dividend. That makes it likely the communication stock is eventually due to move higher.
