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Sony (SONY) Surpasses Market Returns: Some Facts Worth Knowing

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Sony (SONY - Free Report) closed the most recent trading day at $23.01, moving +0.39% from the previous trading session. The stock outperformed the S&P 500, which registered a daily gain of 0.36%. On the other hand, the Dow registered a loss of 0.28%, and the technology-centric Nasdaq increased by 0.51%.

Shares of the electronics and media company have appreciated by 10.35% over the course of the past month, outperforming the Consumer Discretionary sector's gain of 2.68% and the S&P 500's gain of 2.11%.

Analysts and investors alike will be keeping a close eye on the performance of Sony in its upcoming earnings disclosure. The company's earnings report is set to go public on February 13, 2025. The company's upcoming EPS is projected at $0.29, signifying a 27.5% drop compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $24.32 billion, indicating a 4.19% downward movement from the same quarter last year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.21 per share and revenue of $81.77 billion. These totals would mark changes of +11.01% and -3.06%, respectively, from last year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Sony. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Within the past 30 days, our consensus EPS projection has moved 1.04% higher. Sony presently features a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Sony has a Forward P/E ratio of 18.94 right now. This represents a discount compared to its industry's average Forward P/E of 20.82.

Investors should also note that SONY has a PEG ratio of 11.41 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Audio Video Production industry had an average PEG ratio of 11.41 as trading concluded yesterday.

The Audio Video Production industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 52, finds itself in the top 21% echelons of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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