In the latest close session, Sony (SONY) was down 2.07% at $24.65. The stock trailed the S&P 500, which registered a daily gain of 0.28%. On the other hand, the Dow registered a gain of 0.43%, and the technology-centric Nasdaq increased by 0.09%.
The stock of electronics and media company has fallen by 2.86% in the past month, lagging the Consumer Discretionary sector's gain of 5.57% and the S&P 500's gain of 4.37%.
The investment community will be closely monitoring the performance of Sony in its forthcoming earnings report. The company is forecasted to report an EPS of $0.24, showcasing no movement from the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.16 per share and a revenue of $79.87 billion, indicating changes of -5.69% and -6.09%, respectively, from the former year.
Any recent changes to analyst estimates for Sony should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.65% higher. Currently, Sony is carrying a Zacks Rank of #5 (Strong Sell).
With respect to valuation, Sony is currently being traded at a Forward P/E ratio of 21.65. This valuation marks a discount compared to its industry average Forward P/E of 35.93.
We can additionally observe that SONY currently boasts a PEG ratio of 12.1. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. By the end of yesterday's trading, the Audio Video Production industry had an average PEG ratio of 12.1.
The Audio Video Production industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 201, positioning it in the bottom 19% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Leer másRemember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Sony Corporation (SONY) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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