Sony (SONY) closed at $23.36 in the latest trading session, marking a -1.35% move from the prior day. The stock exceeded the S&P 500, which registered a loss of 2.24% for the day. Elsewhere, the Dow lost 1.73%, while the tech-heavy Nasdaq lost 3.07%.
Coming into today, shares of the electronics and media company had lost 3.43% in the past month. In that same time, the Consumer Discretionary sector lost 5.64%, while the S&P 500 lost 4.17%.
Market participants will be closely following the financial results of Sony in its upcoming release. It is anticipated that the company will report an EPS of $0.12, marking a 42.86% fall compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $20.4 billion, showing a 13.03% drop compared to the year-ago quarter.
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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 2.58% increase. At present, Sony boasts a Zacks Rank of #2 (Buy).
Investors should also note Sony's current valuation metrics, including its Forward P/E ratio of 16.56. For comparison, its industry has an average Forward P/E of 18.23, which means Sony is trading at a discount to the group.
One should further note that SONY currently holds a PEG ratio of 2.72. 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. SONY's industry had an average PEG ratio of 2.72 as of yesterday's close.
The Audio Video Production industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 20, finds itself in the top 9% echelons 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.
To follow SONY in the coming trading sessions, be sure to utilize 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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