Sony (SONY) closed the most recent trading day at $21.24, moving +1.38% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.8%. Meanwhile, the Dow lost 0.15%, and the Nasdaq, a tech-heavy index, added 1.6%.
The stock of electronics and media company has risen by 0.14% in the past month, lagging the Consumer Discretionary sector's gain of 4.09% and the S&P 500's gain of 5.15%.
Investors will be eagerly watching for the performance of Sony in its upcoming earnings disclosure. In that report, analysts expect Sony to post earnings of $0.14 per share. This would mark a year-over-year decline of 33.33%. Alongside, our most recent consensus estimate is anticipating revenue of $17.99 billion, indicating a 4.29% upward movement from the same quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.24 per share and a revenue of $78.42 billion, indicating changes of +0.81% and -7.79%, respectively, from the former year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Sony. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
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 past month, there's been no change in the Zacks Consensus EPS estimate. Sony is currently sporting a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that Sony has a Forward P/E ratio of 16.21 right now. For comparison, its industry has an average Forward P/E of 12.59, which means Sony is trading at a premium to the group.
Also, we should mention that SONY has a PEG ratio of 7.14. 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. As the market closed yesterday, the Audio Video Production industry was having an average PEG ratio of 7.14.
The Audio Video Production industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 39, positioning it in the top 16% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Sony Corporation (SONY): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).