Sony (SONY) ended the recent trading session at $24.41, demonstrating a -3.06% change from the preceding day's closing price. This move lagged the S&P 500's daily loss of 0.19%. At the same time, the Dow lost 0.8%, and the tech-heavy Nasdaq lost 0.1%.
The stock of electronics and media company has fallen by 5.48% in the past month, lagging the Consumer Discretionary sector's gain of 0.21% and the S&P 500's gain of 2.26%.
Market participants will be closely following the financial results of Sony in its upcoming release. The company's earnings per share (EPS) are projected to be $0.34, reflecting a 17.07% decrease from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $23.88 billion, down 17.52% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.2 per share and revenue of $77.91 billion, indicating changes of -2.44% and -8.39%, respectively, compared to the previous 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, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.28% increase. Currently, Sony is carrying a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Sony has a Forward P/E ratio of 20.98 right now. For comparison, its industry has an average Forward P/E of 17.29, which means Sony is trading at a premium to the group.
We can also see that SONY currently has a PEG ratio of 9.63. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Audio Video Production industry had an average PEG ratio of 9.63.
The Audio Video Production industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 64, placing it within the top 27% of over 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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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