Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is Sony . SNE is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 14.67, while its industry has an average P/E of 16.67. SNE's Forward P/E has been as high as 16.05 and as low as 6.87, with a median of 14.06, all within the past year.
We also note that SNE holds a PEG ratio of 2. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. SNE's industry currently sports an average PEG of 2.01. Over the last 12 months, SNE's PEG has been as high as 2.46 and as low as 1.16, with a median of 1.89.
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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Should Value Investors Buy Sony (SNE) Stock?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is Sony . SNE is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 14.67, while its industry has an average P/E of 16.67. SNE's Forward P/E has been as high as 16.05 and as low as 6.87, with a median of 14.06, all within the past year.
We also note that SNE holds a PEG ratio of 2. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. SNE's industry currently sports an average PEG of 2.01. Over the last 12 months, SNE's PEG has been as high as 2.46 and as low as 1.16, with a median of 1.89.
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.