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Sony (SONY) Declines More Than Market: Some Information for Investors

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Sony (SONY - Free Report) ended the recent trading session at $23.92, demonstrating a -2.01% change from the preceding day's closing price. The stock's change was less than the S&P 500's daily loss of 0.01%. Elsewhere, the Dow saw a downswing of 0.32%, while the tech-heavy Nasdaq appreciated by 0.05%.

The electronics and media company's shares have seen a decrease of 5.68% over the last month, not keeping up with the Consumer Discretionary sector's gain of 6.61% and the S&P 500's gain of 5.37%.

The investment community will be paying close attention to the earnings performance of Sony in its upcoming release. In that report, analysts expect Sony to post earnings of $0.24 per share. This would mark no growth from the year-ago period.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.16 per share and a revenue of $79.87 billion, representing changes of -5.69% and -6.09%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Sony. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Right now, Sony possesses a Zacks Rank of #3 (Hold).

With respect to valuation, Sony is currently being traded at a Forward P/E ratio of 21. This valuation marks a discount compared to its industry average Forward P/E of 35.

One should further note that SONY currently holds a PEG ratio of 11.73. 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 11.73 as of yesterday's close.

The Audio Video Production industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 92, placing it within the top 38% of over 250 industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. 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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