Sony (SONY) closed at $24.70 in the latest trading session, marking a +1.02% move from the prior day. The stock outperformed the S&P 500, which registered a daily loss of 0.07%.
The electronics and media company's stock has climbed by 6.68% in the past month, falling short of the Consumer Discretionary sector's gain of 19.38% and the S&P 500's gain of 13.74%.
Investors will be eagerly watching for the performance of Sony in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.12, showcasing a 42.86% downward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $20.4 billion, down 13.03% from the year-ago period.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Sony. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, there's been a 0.98% rise in the Zacks Consensus EPS estimate. Sony is holding a Zacks Rank of #2 (Buy) right now.
In the context of valuation, Sony is at present trading with a Forward P/E ratio of 16.93. This valuation marks a discount compared to its industry's average Forward P/E of 18.73.
One should further note that SONY currently holds a PEG ratio of 9.46. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. SONY's industry had an average PEG ratio of 9.46 as of yesterday's close.
The Audio Video Production industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 172, this industry ranks in the bottom 31% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Sony Corporation (SONY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
