Do you have $1,000? 3 Stocks to Buy Now While They’re on Sale

The market is moving higher this year, but there are still plenty of investments that haven’t gotten the memo. Less than 13% of the market’s listed stocks lost more than a third of their value in 2024. Bad opportunities are where you can find good sales if you know what to look for.

Sirius XM Holdings (Siri 2.08%), Lululemon Athletica (Lulu -0.03%)and year (year 0.15%) All are down at least 39% this year. It’s on sale. Let’s take a look at why we think these are some of the names in your Markdown box worth taking to the checkout.

1. Sirius XM — down 51%

Most investors probably haven’t given Sirius XM much thought recently. The only broadcast in the country on satellite radio was a battleground stock a decade ago, but now it’s just another troubled media stock.

This was a slow fade for Sirius XM. Organic revenue growth has remained in the single digits for nearly a decade, including a 0.6% decline in 2023. Despite returning to marginal top-line growth over the past two quarters, the stock has halved this year. .

Image source: Getty Images.

Sirius XM continues to entertain its 33 million subscribers in the new normal. As it is a platform primarily consumed in cars, road trips are expected to increase significantly this summer compared to last year, leading to increased engagement. People are also being called back to in-office work, and satellite radio is making the commute more enjoyable with its premium services.

This is not a stock that should be trading at 11-year lows this month. Sirius XM continues to be profitable and currently trades at just 8x earnings. To make matters worse, Sirius XM has 44% fewer shares outstanding than the last time it traded at this low. Yes, Sirius There is also a 4% return on the stock, rewarding patients as they work to return to growth.

2. Lululemon – down 39%

Slowing growth is also putting a strain on athleisure brand Lululemon Athletica. The company, known for its luxury yoga clothing, is also not growing as fast in sales as it has recently, but is still recording year-over-year profits that are the envy of most clothing companies.

Lululemon achieved net revenue growth of 10% in its most recent fiscal quarter, up 11% in constant currency. While flat comp growth of just 3% in the Americas is troubling, a 25% surge in comps and a 35% increase in international sales boosted overall growth to double-digit increases.

The stock is currently trading at 22 times this year’s expected earnings. Like shoppers at a Lululemon store, you wouldn’t expect to get something this cheap for a stock that has historically traded at a much higher premium in the market. Lululemon itself seems to think now is a good time to buy. The board approved an additional $1 billion in stock buybacks earlier this month.

Year 3 — 41% decrease

Some markdowns are meaningless. Roku isn’t going away as the leader in streaming operating systems. A whopping 81.6 million households continue to use Roku remotes and spend an average of more than four hours a day streaming content on their TVs.

Roku fell for a few reasons. It more than doubled last year, so expectations are definitely higher heading into 2024. Even though the deficit has started to decline, we are continuing to run a deficit. There are also fears of new competitors as the country’s top brick-and-mortar retailer purchases fringe players in Roku’s space.

They all seem like short-term concerns. Roku’s audience is still growing, growing 14% over the past year. After a brief setback, average revenue per user started to creep up again. If you think advertisers and media giants will continue to shift spending toward TV streaming over legacy networks, it might be worth considering buying the top dog.