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

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In the latest trading session, Sony (SONY - Free Report) closed at $29.73, marking a +1.26% move from the previous day. This change outpaced the S&P 500's 0.44% gain on the day. Elsewhere, the Dow gained 0.14%, while the tech-heavy Nasdaq added 0.7%.

The electronics and media company's stock has climbed by 2.62% in the past month, exceeding the Consumer Discretionary sector's gain of 1.92% and lagging the S&P 500's gain of 4.03%.

Market participants will be closely following the financial results of Sony in its upcoming release. The company is forecasted to report an EPS of $0.33, showcasing a 10.81% downward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $20.04 billion, indicating a 2.64% increase compared to the same quarter of the previous year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.18 per share and a revenue of $81.05 billion, indicating changes of -4.07% and -4.7%, respectively, from the former year.

Investors should also note any recent changes to analyst estimates for Sony. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.29% increase. Sony is holding a Zacks Rank of #3 (Hold) right now.

From a valuation perspective, Sony is currently exchanging hands at a Forward P/E ratio of 24.88. This expresses no noticeable deviation compared to the average Forward P/E of 24.88 of its industry.

The Audio Video Production industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 106, positioning it in the top 43% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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