This has been a topsy turvy year, and some investors are having a monster year of gains despite the calamity. However, a lot of well-known companies haven't played nice in the new normal. Shares of Sirius XM Holdings (NASDAQ: SIRI), Walt Disney (NYSE: DIS), and China Mobile (NYSE: CHL) have delivered double-digit percentage declines in 2020.
But things don't have to end badly for the satellite-radio provider, media giant, and Chinese wireless specialist. Let's see why these three stocks with year-to-date slides of at least 10% can beat the market in 2021.
Sirius XM Holdings
Shares of the continent's lone provider of satellite radio services have fallen 17% so far in 2020 through Tuesday's close. It certainly seems as if one of Wall Street's more impressive streaks -- Sirius XM stock delivering positive gains for 11 consecutive years -- ends here.
Premium in-car entertainment has been a casualty of the pandemic. We're not driving around as much as we were in pre-pandemic times, and premium in-car entertainment seems like an easy expenditure to do without right now. The pain is real. We saw Sirius XM's initial guidance calling for 900,000 self-pay net subscriber additions for all of 2020 get cut to 500,000 by the midpoint of this year. However, last week it did post better-than-expected financial results. It also boosted its year-end forecast to closing out 2020 with 800,000 more self-pay net subscribers than it had when the year began. It's obviously not exactly where it was when the year started, but it's a healthy recovery. With monthly churn finally stabilizing and new life in the auto market, Sirius XM appears to be shifting out of reverse.
The world's leader in family entertainment has served up a 14% decline for shareholders this year, and it's easy to see why. Its theme parks were closed in March, and even now the original Disneyland remains shuttered. Movie theaters that were also closed in mid-March reopened over the summer, but with horrible attendance levels Disney has joined other studios in either delaying major theatrical releases or turning to digital delivery. Disney also suspended its dividend earlier this year.
You don't want to bet against Disney for too long. It will bounce back. The Disney+ service that it launched less than a year ago is already topping 60 million subscribers. Disney's media networks have also held up modestly well, arming consumers with comfort food from their living room TVs.
There are some positive catalysts heading into 2021. A lot of the movies it has held back should roll out in the year ahead. Disneyland will inevitably open, and out in the larger Disney World in Florida there are some major ride additions on the way in 2021 as the resort prepares to celebrate 50 years in operation.
It may not be a household name in the U.S., but China Mobile reaches 947 million wireless customers. It did start out the year with 950 million accounts, but naturally the world's most populous country suffered when the COVID-19 crisis broke out in its own backyard. The stock has fallen 19% so far in 2020.
It's easy to bank on better days ahead for China's largest provider of wireless services. The country itself has largely recovered from the pandemic with its GDP rising nearly 5% in the third quarter. China Mobile stock's decline has also helped push its yield up to a hearty 6.8%. There are naturally risks with investing in international stocks -- and China is obviously no exception -- but the leading player in a steadily growing field with hefty payouts sounds like a winner in this climate.
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Rick Munarriz owns shares of China Mobile, Sirius XM Radio, and Walt Disney. The Motley Fool owns shares of and recommends Walt Disney. The Motley Fool recommends Sirius XM Radio and recommends the following options: long January 2021 $60 calls on Walt Disney. The Motley Fool has a disclosure policy.
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