In this segment from Motley Fool Money, host Chris Hill asks analysts David Kretzmann, Seth Jayson, and Jason Moser to share the companies they have their eyes on this week, and why. Their picks are not entirely bullish: Of satellite radio provider Sirius XM (NASDAQ: SIRI), RV maker Thor Industries (NYSE: THO), and mailing and shipping solutions provider Stamps.com (NASDAQ: STMP), only two are recommendations. The third...well, listen in and find out.
A full transcript follows the video.
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This video was recorded on Sept. 28, 2018.
Chris Hill: Alright, let's get to the stocks on our radar. Our man behind the glass, Steve Broido, is going to hit you with a question. Jason Moser, you're up first. What are you looking at?
Jason Moser: Taking a look at Sirius XM, ticker SIRI. The news out this week that they are going to acquire Pandora. I really wouldn't have looked at either one of these companies individually. But the acquisition here, the two together seems a bit more compelling. It's going to give them the opportunity to develop a few different things here. No. 1, an ad-based Sirius product to take advantage of what they see as a fleet of around 200 million vehicles in the coming decade that'll have that Sirius interface. Given they've already got the satellites in there, this could be the terrestrial radio of the 21st century. I like the idea here. The foray into podcasts. I think they're going to hit them with the Hein.
Hill: Steve Broido, question about Sirius XM?
Steve Broido: I'm a shareholder. Does this replace the app, do you think?
Moser: No, I don't think it replaces the app. I think it really gives them the opportunity to reach out of vehicles, certainly, with Pandora. But I think the most compelling part of it is the ad-based Sirius product that sounds like it's in the works.
Hill: Seth Jayson, what are you looking at this week?
Seth Jayson: The stock on my radar, I'm worried is going to crash, actually. It's been on the way down for a while, Thor Industries, RV maker. Airstream, all sorts of different products. We had a huge, long upcycle in RV sales. Millennials were buying them, everyone was buying them. And now, suddenly, the sales are slowing down. It's allegedly just an inventory adjustment at dealers. We've had a couple of quarters of this. I wonder if it's not something worse. I think next quarter is the make or break for not only Thor but peers like Winnebago and retailers like Camping World.
Hill: The ticker symbol?
Broido: Is there a movement, do you think, with people living full-time in their RVs? You see more about that these days.
Jayson: I don't know if there's such a movement of that. But definitely, a lot of the recent growth was selling cheaper units to younger people.
Hill: David Kretzmann, what are you looking at this week?
David Kretzmann: I'm looking at stamps.com, ticker STMP. They are a provider of multiple software solutions for mailing and shipping. They're benefiting from the rise of e-commerce and the subsequent increase in the number of packages that are being shipped. They're a multi-carrier solution. You can select postage from USPS, FedEx, UPS, DHL, and all sorts of different providers. Growing revenue at a 20% plus clip. They're in the early stages of expanding internationally in Canada and Europe. The valuation looks pretty compelling, as well, for a company growing this fast and this profitably.
Hill: Steve, question about stamps.com?
Broido: We were talking about URLs earlier. Do you think they should win just because they bought stamps.com? It seems like success right there.
Kretzmann: An early winner from the 90s, absolutely. I think they deserve props for that.
Hill: Steve, three very different stocks. You have one you want to add your watch list?
Broido: I love Sirius, I'm a shareholder, so I'm going with Sirius.
Chris Hill has no position in any of the stocks mentioned. David Kretzmann owns shares of CWH, Sirius XM Radio, and Stamps.com. Jason Moser has no position in any of the stocks mentioned. Seth Jayson has no position in any of the stocks mentioned. Steve Broido owns shares of Sirius XM Radio. The Motley Fool owns shares of and recommends P and Stamps.com. The Motley Fool recommends CWH and FDX. The Motley Fool has a disclosure policy.