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Sony (SONY) Dips More Than Broader Markets: What You Should Know

In the latest trading session, Sony (SONY) closed at $125.92, marking a -0.61% move from the previous day.

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This story originally appeared on Zacks

In the latest trading session, Sony (SONY) closed at $125.92, marking a -0.61% move from the previous day. This change lagged the S&P 500's 0.3% loss on the day. Meanwhile, the Dow lost 0.25%, and the Nasdaq, a tech-heavy index, added 0.2%.

- Zacks

Heading into today, shares of the electronics and media company had gained 6.13% over the past month, outpacing the Consumer Discretionary sector's loss of 1.32% and the S&P 500's gain of 3.11% in that time.

Wall Street will be looking for positivity from Sony as it approaches its next earnings report date. On that day, Sony is projected to report earnings of $1.56 per share, which would represent a year-over-year decline of 40.91%. Our most recent consensus estimate is calling for quarterly revenue of $26.01 billion, up 0.72% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $6.18 per share and revenue of $91.15 billion, which would represent changes of -30.09% and +7.24%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Sony. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Sony is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Sony has a Forward P/E ratio of 20.52 right now. This represents a premium compared to its industry's average Forward P/E of 12.56.

We can also see that SONY currently has a PEG ratio of 1.76. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Audio Video Production stocks are, on average, holding a PEG ratio of 1.55 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 115, which puts it in the top 46% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.



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