Sony (SONY) closed at $20.09 in the latest trading session, marking a +1.57% move from the prior day. This change outpaced the S&P 500's 1.02% gain on the day. At the same time, the Dow added 1.62%, and the tech-heavy Nasdaq gained 0.89%.
Shares of the electronics and media company have depreciated by 6.34% over the course of the past month, underperforming the Consumer Discretionary sector's gain of 3.07%, and the S&P 500's gain of 12.23%.
The upcoming earnings release of Sony will be of great interest to investors. The company is forecasted to report an EPS of $0.14, showcasing a 33.33% downward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $17.99 billion, indicating a 4.29% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $1.25 per share and a revenue of $78.42 billion, demonstrating changes of +1.63% and -7.79%, respectively, from the preceding year.
Any recent changes to analyst estimates for Sony should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been a 2.13% rise in the Zacks Consensus EPS estimate. At present, Sony boasts a Zacks Rank of #2 (Buy).
Looking at its valuation, Sony is holding a Forward P/E ratio of 14.98. This represents a premium compared to its industry average Forward P/E of 14.72.
Also, we should mention that SONY has a PEG ratio of 6.6. 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. Audio Video Production stocks are, on average, holding a PEG ratio of 6.6 based on yesterday's closing prices.
The Audio Video Production industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 94, finds itself in the top 39% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners UpSony Corporation (SONY) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
