Sony (SONY) Exceeds Market Returns: Some Facts to Consider

In the latest close session, Sony (SONY) was up +1.89% at $26.40. The stock's change was more than the S&P 500's daily gain of 0.38%. Meanwhile, the Dow gained 0.24%, and the Nasdaq, a tech-heavy index, added 0.24%. The electronics and media company's shares have seen an increase of 4.14% over the last month, not keeping up with the Consumer Discretionary sector's gain of 6.34% and the S&P 500's gain of 6.6%.The investment community will be paying close attention to the earnings performance of Sony in its upcoming release. In that report, analysts expect Sony to post earnings of $0.23 per share. This would mark a year-over-year decline of 4.17%. SONY's full-year Zacks Consensus Estimates are calling for earnings of $1.16 per share and revenue of $79.87 billion. These results would represent year-over-year changes of -5.69% and -6.09%, respectively. Any recent changes to analyst estimates for Sony should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential. Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 20.01% lower. Currently, Sony is carrying a Zacks Rank of #5 (Strong Sell). Investors should also note Sony's current valuation metrics, including its Forward P/E ratio of 22.43. This indicates a discount in contrast to its industry's Forward P/E of 34.17. It is also worth noting that SONY currently has a PEG ratio of 12.53. 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. As of the close of trade yesterday, the Audio Video Production industry held an average PEG ratio of 12.53. The Audio Video Production industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 185, positioning it in the bottom 25% 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. Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions. Don’t Miss Out on These Stocks Before you make your next investing move, we have a free report that highlights the %%CTA_TEXT%% to buy.Our experts at Zacks Investment Research hand-selected these stocks for their eye-opening growth projections.Since 1988, our stock picks have more than doubled the S&P 500 with an average gain of +23.89% per year using the Zacks Rank stock-rating system.Register now to see the %%CTA_TEXT%%.7 best stocksWant 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