Sony (SONY) closed the latest trading day at $21.46, indicating a +1.32% change from the previous session's end. This move outpaced the S&P 500's daily loss of 1.11%. Elsewhere, the Dow lost 0.77%, while the tech-heavy Nasdaq lost 1.49%.
Shares of the electronics and media company witnessed a gain of 7.19% over the previous month, beating the performance of the Consumer Discretionary sector with its loss of 0.11% and the S&P 500's gain of 0.4%.
Analysts and investors alike will be keeping a close eye on the performance of Sony in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.27, reflecting a 32.5% decrease from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $23.59 billion, down 7.05% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $1.17 per share and revenue of $82.4 billion, which would represent changes of +7.34% and -2.32%, respectively, from the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Sony. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Sony is holding a Zacks Rank of #2 (Buy) right now.
With respect to valuation, Sony is currently being traded at a Forward P/E ratio of 18.11. This expresses a discount compared to the average Forward P/E of 26.47 of its industry.
It is also worth noting that SONY currently has a PEG ratio of 13.41. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Audio Video Production stocks are, on average, holding a PEG ratio of 13.41 based on yesterday's closing prices.
The Audio Video Production industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 15, finds itself in the top 6% echelons of all 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.
To follow SONY in the coming trading sessions, be sure to utilize Zacks.com.
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