In the latest close session, Sony (SONY) was up +1.4% at $20.98. The stock exceeded the S&P 500, which registered a gain of 0.05% for the day. At the same time, the Dow added 0.46%, and the tech-heavy Nasdaq lost 0.64%.
The electronics and media company’s shares have seen an increase of 7.09% over the last month, surpassing the Consumer Discretionary sector’s loss of 2.45% and the S&P 500’s gain of 0.61%.
The investment community will be closely monitoring the performance of Sony in its forthcoming earnings report. It is anticipated that the company will report an EPS of $0.33, marking a 10% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $16.67 billion, down 8.14% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.28 per share and revenue of $78.16 billion, indicating changes of +12.28% and -5.72%, respectively, compared to the previous year.
Investors should also pay attention to any latest changes in analyst estimates for Sony. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts’ positivity towards the business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we’ve crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.19% lower. Sony is currently a Zacks Rank #3 (Hold).
From a valuation perspective, Sony is currently exchanging hands at a Forward P/E ratio of 16.13. This indicates a premium in contrast to its industry’s Forward P/E of 12.59.
Meanwhile, SONY’s PEG ratio is currently 1.64. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company’s expected earnings growth rate into account. As of the close of trade yesterday, the Audio Video Production industry held an average PEG ratio of 1.64.
The Audio Video Production industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 95, this industry ranks in the top 39% of all industries, numbering over 250.
