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In the latest market close, Sony (SONY) reached $21.02, with a +1.74% movement compared to the previous day. The stock outperformed the S&P 500, which registered a daily gain of 1.09%. Elsewhere, the Dow gained 1.18%, while the tech-heavy Nasdaq added 1.03%.
The electronics and media company's shares have seen an increase of 8.34% over the last month, surpassing the Consumer Discretionary sector's gain of 0.49% and the S&P 500's loss of 0.71%.
The investment community will be closely monitoring the performance of Sony in its forthcoming earnings report. The company is predicted to post an EPS of $0.27, indicating a 32.5% decline compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $23.59 billion, indicating a 7.05% decrease compared to the same quarter of the previous year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.17 per share and a revenue of $82.4 billion, signifying shifts of +7.34% and -2.32%, respectively, from the last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Sony. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Currently, Sony is carrying a Zacks Rank of #2 (Buy).
In terms of valuation, Sony is currently trading at a Forward P/E ratio of 17.67. This denotes a discount relative to the industry's average Forward P/E of 25.76.
We can also see that SONY currently has a PEG ratio of 13.09. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Audio Video Production industry stood at 13.09 at the close of the market yesterday.
The Audio Video Production industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 19, placing it within the top 8% of over 250 industries.