In the latest close session, Sony (SONY) was up +1.4% at $23.82. The stock outperformed the S&P 500, which registered a daily gain of 0.73%. Meanwhile, the Dow gained 0.49%, and the Nasdaq, a tech-heavy index, added 1.19%.
Heading into today, shares of the electronics and media company had lost 5.89% over the past month, outpacing the Consumer Discretionary sector's loss of 6.5% and lagging the S&P 500's gain of 0.55%.
Market participants will be closely following the financial results of Sony in its upcoming release. At the same time, our most recent consensus estimate is projecting a revenue of $19.93 billion, reflecting a 5.46% fall from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.41 per share and a revenue of $81.26 billion, signifying shifts of +23.68% and -1.98%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for Sony. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Sony is currently a Zacks Rank #3 (Hold).
With respect to valuation, Sony is currently being traded at a Forward P/E ratio of 16.63. Its industry sports an average Forward P/E of 15.39, so one might conclude that Sony is trading at a premium comparatively.
One should further note that SONY currently holds a PEG ratio of 1.7. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Audio Video Production industry held an average PEG ratio of 1.7.
The Audio Video Production industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 233, finds itself in the bottom 6% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
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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This article originally published on Zacks Investment Research (zacks.com).