Sony (SONY) closed the most recent trading day at $20.69, moving -1.1% from the previous trading session. The stock outperformed the S&P 500, which registered a daily loss of 1.21%. On the other hand, the Dow registered a loss of 0.97%, and the technology-centric Nasdaq decreased by 2.15%.
Prior to today's trading, shares of the electronics and media company had gained 4.55% outpaced the Consumer Discretionary sector's loss of 0.92% and the S&P 500's gain of 0.42%.
Market participants will be closely following the financial results of Sony in its upcoming release. The company is predicted to post an EPS of $0.33, indicating a 10% growth compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $16.67 billion, showing a 8.14% drop compared to the year-ago quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.28 per share and a revenue of $78.16 billion, representing changes of +12.28% and -5.72%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Sony. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, 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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.19% downward. Sony is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Sony is currently trading at a Forward P/E ratio of 16.31. For comparison, its industry has an average Forward P/E of 12.75, which means Sony is trading at a premium to the group.
It's also important to note that SONY currently trades at a PEG ratio of 1.66. 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. The Audio Video Production was holding an average PEG ratio of 1.66 at yesterday's closing price.
The Audio Video Production industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 95, which puts it in the top 39% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Sony Corporation (SONY): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).