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Are Investors Undervaluing Sony (SNE) Right Now?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One stock to keep an eye on is Sony (SNE - Free Report) . SNE is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 10.78. This compares to its industry's average Forward P/E of 11.82. Over the last 12 months, SNE's Forward P/E has been as high as 17.08 and as low as 10.78, with a median of 13.11.

SNE is also sporting a PEG ratio of 1.07. 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. SNE's industry has an average PEG of 1.16 right now. Over the past 52 weeks, SNE's PEG has been as high as 2.68 and as low as 1.07, with a median of 1.91.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Sony is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, SNE feels like a great value stock at the moment.




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