Sony (SONY) ended the recent trading session at $21.38, demonstrating a +2.39% change from the preceding day's closing price. The stock's change was less than the S&P 500's daily gain of 2.51%. Elsewhere, the Dow saw an upswing of 2.85%, while the tech-heavy Nasdaq appreciated by 2.8%.
Shares of the electronics and media company witnessed a loss of 3.69% over the previous month, beating the performance of the Consumer Discretionary sector with its loss of 4.12%, and underperforming the S&P 500's loss of 1.66%.
Market participants will be closely following the financial results of Sony in its upcoming release. The company is predicted to post an EPS of $0.14, indicating a 33.33% decline compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $17.99 billion, indicating a 4.29% growth compared to the corresponding quarter of the prior year.
SONY's full-year Zacks Consensus Estimates are calling for earnings of $1.24 per share and revenue of $78.42 billion. These results would represent year-over-year changes of +0.81% and -7.79%, respectively.
Any recent changes to analyst estimates for Sony should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. As of now, Sony holds a Zacks Rank of #2 (Buy).
Digging into valuation, Sony currently has a Forward P/E ratio of 16.16. This valuation marks a premium compared to its industry average Forward P/E of 13.28.
Meanwhile, SONY's PEG ratio is currently 7.12. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Audio Video Production industry was having an average PEG ratio of 7.12.
The Audio Video Production industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 24, this industry ranks in the top 10% of all industries, numbering over 250.
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.
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).