Sony (SONY) closed at $21.70 in the latest trading session, marking a +1.12% move from the prior day. This move lagged the S&P 500's daily gain of 1.2%. At the same time, the Dow added 1.79%, and the tech-heavy Nasdaq gained 1.52%.
Shares of the electronics and media company have appreciated by 4.07% over the course of the past month, underperforming the Consumer Discretionary sector's gain of 4.18%, and the S&P 500's gain of 5.15%.
The upcoming earnings release of Sony will be of great interest to investors. The company is forecasted to report an EPS of $0.14, showcasing a 33.33% downward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $17.99 billion, up 4.29% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.25 per share and a revenue of $78.42 billion, indicating changes of +1.63% and -7.79%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for Sony. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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, the Zacks Consensus EPS estimate has moved 2.13% higher. Sony is currently a Zacks Rank #2 (Buy).
Looking at valuation, Sony is presently trading at a Forward P/E ratio of 16.26. This valuation marks a premium compared to its industry average Forward P/E of 14.86.
We can additionally observe that SONY currently boasts a PEG ratio of 7.16. 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. By the end of yesterday's trading, the Audio Video Production industry had an average PEG ratio of 7.16.
The Audio Video Production industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 39, finds itself in the top 16% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Sony Corporation (SONY): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).