Sony (SONY) Falls More Steeply Than Broader Market: What Investors Need to Know

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In the latest trading session, Sony (SONY) closed at $20.66, marking a -1.2% move from the previous day. The stock trailed the S&P 500, which registered a daily loss of 0.09%. Elsewhere, the Dow saw an upswing of 0.04%, while the tech-heavy Nasdaq depreciated by 0.1%.

The the stock of electronics and media company has risen by 9.02% in the past month, leading the Consumer Discretionary sector's gain of 0.69% and the S&P 500's loss of 0.29%.

The investment community will be paying close attention to the earnings performance of Sony in its upcoming release. The company's upcoming EPS is projected at $0.27, signifying a 32.5% drop compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $23.59 billion, down 7.05% from the year-ago period.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.17 per share and a revenue of $82.4 billion, indicating changes of +7.34% and -2.32%, respectively, from the former year.

Investors might also notice recent changes to analyst estimates for Sony. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating 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 #2 (Buy) right now.

With respect to valuation, Sony is currently being traded at a Forward P/E ratio of 17.88. This denotes a discount relative to the industry's average Forward P/E of 25.22.

We can additionally observe that SONY currently boasts a PEG ratio of 13.24. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Audio Video Production industry stood at 13.24 at the close of the market yesterday.

The Audio Video Production industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 19, positioning it in the top 8% of all 250+ industries.