Back to top

Image: Bigstock

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

Read MoreHide Full Article

Sony (SONY - Free Report) closed the most recent trading day at $25.88, moving +1.09% from the previous trading session. The stock's change was more than the S&P 500's daily gain of 0.19%. On the other hand, the Dow registered a gain of 0.66%, and the technology-centric Nasdaq decreased by 0.03%.

Heading into today, shares of the electronics and media company had lost 9.51% over the past month, lagging the Consumer Discretionary sector's loss of 0.12% and the S&P 500's gain of 0.54%.

The investment community will be closely monitoring the performance of Sony in its forthcoming earnings report. The company is expected to report EPS of $0.34, down 17.07% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $23.88 billion, down 17.52% from the year-ago period.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.2 per share and a revenue of $77.91 billion, indicating changes of -2.44% and -8.39%, respectively, from the former year.

Investors should also pay attention to any latest changes in analyst estimates for Sony. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 0.28% higher. As of now, Sony holds a Zacks Rank of #2 (Buy).

With respect to valuation, Sony is currently being traded at a Forward P/E ratio of 21.33. For comparison, its industry has an average Forward P/E of 17.22, which means Sony is trading at a premium to the group.

Meanwhile, SONY's PEG ratio is currently 9.79. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. SONY's industry had an average PEG ratio of 9.79 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 36, placing it within the top 15% 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.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


See More Zacks Research for These Tickers


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


Sony Corporation (SONY) - free report >>

Published in