In the latest trading session, Sony (SONY) closed at $25.17, marking a -0.87% move from the previous day. The stock's change was less than the S&P 500's daily gain of 0.38%. At the same time, the Dow lost 0.03%, and the tech-heavy Nasdaq gained 0.87%.
The electronics and media company's stock has climbed by 3.25% in the past month, exceeding the Consumer Staples sector's gain of 1.23% and the S&P 500's loss of 5.59%.
The investment community will be closely monitoring the performance of Sony in its forthcoming earnings report. The company is predicted to post an EPS of $0.12, indicating a 42.86% decline compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $20.4 billion, down 13.03% from the year-ago period.
Investors might also notice recent changes to analyst estimates for Sony. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 2.3% upward. Sony is currently sporting a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that Sony has a Forward P/E ratio of 20.77 right now. For comparison, its industry has an average Forward P/E of 20.94, which means Sony is trading at a discount to the group.
It is also worth noting that SONY currently has a PEG ratio of 3.41. 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. By the end of yesterday's trading, the Consumer Products - Staples industry had an average PEG ratio of 3.45.
The Consumer Products - Staples industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 148, which puts it in the bottom 41% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Sony Corporation (SONY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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