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Here's Why Sony (SONY) Fell More Than Broader Market

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Sony (SONY - Free Report) closed at $24.75 in the latest trading session, marking a -4.37% move from the prior day. This move lagged the S&P 500's daily loss of 0.22%. On the other hand, the Dow registered a gain of 0.08%, and the technology-centric Nasdaq decreased by 0.51%.

The electronics and media company's shares have seen an increase of 2.17% over the last month, surpassing the Consumer Discretionary sector's loss of 0.1% and the S&P 500's gain of 0.45%.

The investment community will be closely monitoring the performance of Sony in its forthcoming earnings report. On that day, Sony is projected to report earnings of $0.23 per share, which would represent a year-over-year decline of 4.17%.

For the full year, the Zacks Consensus Estimates project earnings of $1.16 per share and a revenue of $79.87 billion, demonstrating changes of -5.69% and -6.09%, respectively, from the preceding year.

It is also important to note the recent changes to analyst estimates for Sony. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 2.31% lower. Sony is currently a Zacks Rank #5 (Strong Sell).

With respect to valuation, Sony is currently being traded at a Forward P/E ratio of 22.26. This signifies a discount in comparison to the average Forward P/E of 33.66 for its industry.

Meanwhile, SONY's PEG ratio is currently 12.44. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. SONY's industry had an average PEG ratio of 12.44 as of yesterday's close.

The Audio Video Production industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 193, this industry ranks in the bottom 22% of all industries, numbering over 250.

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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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