Sony Corporation (SONY) Hit a 52 Week High, Can the Run Continue?

Have you been paying attention to shares of Sony (SONY)? Shares have been on the move with the stock up 2.3% over the past month. The stock hit a new 52-week high of $25.9 in the previous session. Sony has gained 21.7% since the start of the year compared to the -3.4% move for the Zacks Consumer Discretionary sector and the 19.4% return for the Zacks Audio Video Production industry.What's Driving the Outperformance?The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on February 13, 2025, Sony reported EPS of $0.41 versus consensus estimate of $0.29 while it beat the consensus revenue estimate by 19.05%.For the current fiscal year, Sony is expected to post earnings of $1.44 per share on $90.53 billion in revenues. Meanwhile, for the next fiscal year, the company is expected to earn $1.64 per share on $91.21 billion in revenues. This represents a year-over-year change of 15.92% and 0.74%, respectively.Valuation MetricsSony may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.Sony has a Value Score of C. The stock's Growth and Momentum Scores are B and A, respectively, giving the company a VGM Score of B.In terms of its value breakdown, the stock currently trades at 17.8X current fiscal year EPS estimates, which is not in-line with the peer industry average of 19X. On a trailing cash flow basis, the stock currently trades at 10.9X versus its peer group's average of 20.3X. Additionally, the stock has a PEG ratio of 9.96. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.Zacks RankWe also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Sony currently has a Zacks Rank of #1 (Strong Buy) thanks to rising earnings estimates.Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Sony passes the test. Thus, it seems as though Sony shares could have potential in the weeks and months to come.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Sony Corporation (SONY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks