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Sony (SONY) Outpaces Stock Market Gains: What You Should Know

Sony (SONY) closed at $105.42 in the latest trading session, marking a +0.61% move from the prior day.

This story originally appeared on Zacks

Sony (SONY) closed the most recent trading day at $105.42, moving +0.61% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.28%.

- Zacks

Heading into today, shares of the electronics and media company had gained 2.46% over the past month, lagging the Consumer Discretionary sector's gain of 3.25% and the S&P 500's gain of 3.07% in that time.

SONY will be looking to display strength as it nears its next earnings release. In that report, analysts expect SONY to post earnings of $1.58 per share. This would mark a year-over-year decline of 54.47%. Our most recent consensus estimate is calling for quarterly revenue of $21.96 billion, up 10.26% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.76 per share and revenue of $91.7 billion, which would represent changes of -34.84% and +7.89%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for SONY. 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 company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.52% lower. SONY currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that SONY has a Forward P/E ratio of 18.18 right now. For comparison, its industry has an average Forward P/E of 14.17, which means SONY is trading at a premium to the group.

Meanwhile, SONY's PEG ratio is currently 1.56. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Audio Video Production stocks are, on average, holding a PEG ratio of 1.22 based on yesterday's closing prices.

The Audio Video Production industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 105, which puts it in the top 42% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

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