Stocks are ticking slightly higher this morning on Christmas Eve. Stimulus hope remains in question after house GOP members moved to block a measure that would send out $2000 stimulus checks.
The stock market will be closed tomorrow in observance of the Christmas holiday. As for today, will it be candy canes or a lump of coal? Stay tuned to find out.
Now there are a multitude of experts proclaiming that value stocks will be en vogue in 2021 – and indeed, many already started to rally in 2020’s late innings. Cyclical stocks considered too risky just a few months ago are suddenly flashing on investors’ radar.
Bank of America, for instance, sees the U.S. stock market in the early stages of a value cycle that will pick up steam in 2021. “The relative discount for value stocks remains nearly two standard deviations below average, “ BofA analysts say.
Our trade alert for today highlights one value stock that looks poised to reward investors in 2021 and beyond.
Sirius XM (SIRI) is the primary asset of 74% ownership by Liberty Sirius XM (LSXMK). These investments are controlled by legendary media investor John Malone. Investors who have followed Malone in and out of media stocks over the past 25 years can attest to the solid returns.
Liberty Sirius XM’s ownership in SIRI has risen steadily in recent years. When it crosses 80%, which at the current rate might be in early 2022, Malone may provide investors with a profitable exit, a pattern he has followed in the past.
SIRI has recovered a bit as auto sales have returned to pre-pandemic levels, and 78% of new car sales are enabled to receive Sirius XM. Additionally, the percentage of used cars sold with Sirius XM subscriptions continues to rise, and currently represent 50%.
LSXMK also trades at a 17% discount to the value of its holdings in Sirius XM. If these discounts were eliminated, perhaps in two years, we could see a stock, which closed at $42.32, worth $63. If past is prologue, it should be worth waiting for.
Of 13 analyst ratings, 10 rate the stock a Strong Buy, along with one Buy, one Hold and one Strong Sell rating, giving SIRI stock a consensus rating of Strong Buy.
Where to invest $1,000 right now...
Before you consider buying Sirius XM, you'll want to see this.
Investing legend, Keith Kohl just revealed his #1 stock for 2022...
And it's not Sirius XM.
Jeff Bezos, Peter Thiel, and the Rockefellers are betting a colossal nine figures on this tiny company that trades publicly for $5.
Keith say’s he thinks investors will be able to turn a small $50 stake into $150,000.
Find that to be extraordinary?
But you have to act now, because a catalyst coming in a few weeks is set to take this company mainstream... And by then, it could be too late.
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