Sony (SONY) closed at $21.15 in the latest trading session, marking a -1.17% move from the prior day. This move lagged the S&P 500's daily loss of 0.28%. Elsewhere, the Dow saw a downswing of 1.09%, while the tech-heavy Nasdaq appreciated by 0.2%.
Heading into today, shares of the electronics and media company had gained 0.42% over the past month, lagging the Consumer Discretionary sector's gain of 1.44% and the S&P 500's gain of 1.64%.
Analysts and investors alike will be keeping a close eye on the performance of Sony in its upcoming earnings disclosure. In that report, analysts expect Sony to post earnings of $0.33 per share. This would mark year-over-year growth of 10%. Meanwhile, our latest consensus estimate is calling for revenue of $16.67 billion, down 8.14% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.28 per share and a revenue of $78.16 billion, signifying shifts of +12.28% and -5.72%, respectively, from the last year.
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. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Sony is holding a Zacks Rank of #3 (Hold) right now.
Looking at valuation, Sony is presently trading at a Forward P/E ratio of 16.69. This represents a premium compared to its industry average Forward P/E of 12.26.
Investors should also note that SONY has a PEG ratio of 1.7 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Audio Video Production was holding an average PEG ratio of 1.7 at yesterday's closing price.
The Audio Video Production industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 73, positioning it in the top 30% 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.
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).