Back to top

Image: Bigstock

Sony (SONY) Outperforms Broader Market: What You Need to Know

Read MoreHide Full Article

In the latest market close, Sony (SONY - Free Report) reached $18.05, with a +1.75% movement compared to the previous day. This change outpaced the S&P 500's 1.23% gain on the day. Elsewhere, the Dow saw an upswing of 1.02%, while the tech-heavy Nasdaq appreciated by 1.43%.

Prior to today's trading, shares of the electronics and media company had lost 7.28% over the past month. This has lagged the Consumer Discretionary sector's gain of 1.35% and the S&P 500's loss of 0.54% in that time.

The investment community will be closely monitoring the performance of Sony in its forthcoming earnings report. The company is expected to report EPS of $0.27, up 22.73% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $20.33 billion, up 7.69% from the year-ago period.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.12 per share and a revenue of $90.07 billion, indicating changes of +2.75% and +6.77%, respectively, from the former year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Sony. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Sony is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Sony has a Forward P/E ratio of 15.85 right now. This signifies a discount in comparison to the average Forward P/E of 23.79 for its industry.

The Audio Video Production industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 154, placing it within the bottom 39% of over 250 industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Sony Corporation (SONY) - free report >>

Published in