Sony (SONY) ended the recent trading session at $22.92, demonstrating a -0.22% swing from the preceding day's closing price. This change was narrower than the S&P 500's 3.46% loss on the day. Meanwhile, the Dow lost 2.5%, and the Nasdaq, a tech-heavy index, lost 4.31%.
Shares of the electronics and media company have depreciated by 3.04% over the course of the past month, outperforming the Consumer Discretionary sector's loss of 6.94% and the S&P 500's loss of 5.27%.
The investment community will be paying close attention to the earnings performance of Sony in its upcoming release. The company is predicted to post an EPS of $0.12, indicating a 42.86% decline compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $20.4 billion, indicating a 13.03% decline compared to the corresponding quarter of the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Sony. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 2.58% higher. At present, Sony boasts a Zacks Rank of #1 (Strong Buy).
Investors should also note Sony's current valuation metrics, including its Forward P/E ratio of 14.93. For comparison, its industry has an average Forward P/E of 20.72, which means Sony is trading at a discount to the group.
Investors should also note that SONY has a PEG ratio of 2.45 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Audio Video Production industry stood at 2.45 at the close of the market yesterday.
The Audio Video Production industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 3, positioning it in the top 2% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Sony Corporation (SONY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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