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Bull of the Day: Sony (SNE)

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Though some investors might be worried about Japanese stocks in the current geopolitical environment, several are intriguing values right now. One such company is Sony ((SNE - Free Report) ), as this Japanese giant is firing on all cylinders and could be an interesting choice for investors.

Why you might ask? Well, the company is really turning things around on the earnings and sales fronts, and that is very evident from the company’s most recent report. Let’s take a look at some of the key factors to get a better idea of what makes Sony such an intriguing pick right now.

Recent Earnings

The most important thing for Sony is the company’s latest earnings release. In the report, Sony posted earnings of 56 cents per share which easily beat out the consensus estimate of 48 cents per share. The strength of this beat was largely predicated on newfound positive trends in the semiconductor and imaging divisions.

Imaging went from an operating income of 7.5 billion yen a year ago to 23.2 billion yen today, while the semiconductor market saw an even more dramatic turnaround. This went from a loss of 43.5 billion yen a year ago to a positive operating income of 55.4 billion yen in the most recent quarter.

Continued strength is expected in these divisions going forward too, as both saw a boost to their forecasts. And with a number of other areas of the business humming along, there is plenty of reason to like Sony right now.

Other Factors

Analysts also seem to be embracing the trend, as we haven’t seen a single cut to the full year consensus estimate in the past two months for Sony stock. Instead, we have seen the full year consensus increase by nearly 10% in the past two months, while the following year earnings consensus has risen by 7.4% in the same time frame.

Additionally, the sector and industry trend has also been impressive for Sony and its industry at large too. SNE’s industry was actually ranked in the bottom 10% two months ago, but has moved up to the top 10% since then. This is a dramatic turnaround, and it underscores the strength in this market as of late. No wonder Sony has been able to move up to a Zacks Rank #1 (Strong Buy), and why good times could be ahead for shares of this name in the near-term.

Sony Corp Ord Price and Consensus

Sony Corp Ord Price and Consensus | Sony Corp Ord Quote

Not only is Sony a ‘Strong Buy’ stock right now, but the company also has a ‘B’ VGM score too. This is assisted by its strong value grade of ‘A’, which combines nicely with many of the other factors and trends we discussed above.

So, if you are looking for a new stock in the foreign market, definitely give Sony a closer look. The company’s recent plans are really coming together, and shares are a great value now too, making it a company that is definitely worth putting on your radar.


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