Sony ( SNE Quick Quote SNE - Free Report) is picking up momentum as it's set to launch the PlayStation 5. This Zacks Rank #1 (Strong Buy) has finally busted out to new 5-year highs. Sony is a global technology, entertainment and gaming company headquartered in Japan. Sony is Back in the Public Eye After putting a turnaround strategy in place several years ago, Sony is set to reveal the fruit of its labor in 2020. At the Las Vegas Consumer Electronics Show in January, Sony surprised audiences by unveiling an electric concept car. The car isn't mean to be sold to the masses, per say, but it was to highlight its semiconductor segment, which has seen big growth in recent quarters. The car, called Vision-S, has 33 sensors, which can detect people and other vehicles and objects inside and outside the car. This is part of Sony's vision for the future of AI and the automobile. It also highlighted a new infotainment system with surround sound speakers in every seat. Sony already sells some of the technology to Toyota and Lexus but this surprise launch at CES is the company sending a signal that it's engineers are in the game. PlayStation 5 Anticipation Builds Also at CES, Sony was expected to unveil the new PlayStation 5 console, but, instead, all it did was reveal the new logo. Sony did confirm that it will available next holiday season, however. Diehard fans will have to wait a little bit longer to actually see it. But there is no doubt that this product is going to be one of the hottest items for next holiday season. It should give a boost to earnings, as gaming has been lackluster as fans have been waiting for the new console and not purchasing the old one. Earnings Moving Higher Sony has always given conservative guidance so it has been beating most quarters. The fiscal 2019 earnings estimates are on the rise in the last 90 days. The F2019 Zacks Consensus Estimate is now at $4.05 up from $3.73. That's still an earnings decline of 37% as the company made $6.43 in Fiscal 2018. But Fiscal 2020 is expected to rise 14.9% to $4.65, up from $4.18 just 3 months ago. Sony reports fiscal third quarter results on Feb 4 so the estimates will likely be revised again shortly. Shares Break Out to New Highs Sony shares have lagged the tech sector over the past few years but in 2019, they finally caught a bid. Shares are up 41.2% over the last year and are at new 5-year highs.
They are still attractively priced, however, with a forward P/E of just 17. Its peers in entertainment, such as Netflix ( NFLX Quick Quote NFLX - Free Report) and Apple ( AAPL Quick Quote AAPL - Free Report) , are trading at 61x and 22x, respectively. Sony also pays a dividend, albeit a small one, currently yielding 0.4%. For investors looking for a technology and entertainment company trading at an attractive price, Sony is one to keep on the short list. Just Released: Zacks’ 7 Best Stocks for Today Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.6% per year. These 7 were selected because of their superior potential for immediate breakout. See these time-sensitive tickers now >>