In the latest trading session, Sony (SONY) closed at $22.96, marking a -3.04% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.55%. Meanwhile, the Dow experienced a rise of 0.63%, and the technology-dominated Nasdaq saw an increase of 0.91%.
Shares of the electronics and media company have depreciated by 7.86% over the course of the past month, underperforming the Consumer Discretionary sector's loss of 2.69%, and the S&P 500's gain of 0.71%.
Investors will be eagerly watching for the performance of Sony in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.34, indicating a 17.07% decline compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $23.88 billion, indicating a 17.52% decline compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.19 per share and a revenue of $77.91 billion, signifying shifts of -3.25% and -8.39%, respectively, from the last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Sony. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.56% lower. Sony is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Sony is currently trading at a Forward P/E ratio of 19.84. This valuation marks a premium compared to its industry average Forward P/E of 15.42.
Also, we should mention that SONY has a PEG ratio of 9.1. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Audio Video Production industry currently had an average PEG ratio of 9.1 as of yesterday's close.
The Audio Video Production industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 25, this industry ranks in the top 11% of all industries, numbering over 250.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many 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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