Sony (SONY) outpaces stock market gains: what you need to know


Sony (SONY) closed at $106.12 last trading session, marking a +1.43% move from the previous day. That move topped the S&P 500’s 1.17% daily gain. Elsewhere, the Dow gained 0.8%, while the tech-heavy Nasdaq gained 0.18%.

Prior to today’s session, shares of the electronics and media company were down 0.18% in the past month. This was narrower than the Consumer Discretionary sector’s 5.02% loss and lagged the S&P 500’s 0.88% gain during this period.

Sony will be looking to show some strength ahead of its next earnings release. On that day, Sony is expected to report earnings of $0.84 per share, which would represent 3.7% year-over-year growth. Our most recent consensus estimate calls for quarterly revenue of $20.82 billion, down 0.65% from the prior year period.

Looking to the full year, our Zacks consensus estimates suggest analysts expect earnings of $6.39 per share and revenue of $89.16 billion. These totals would mark changes of -27.71% and +4.9%, respectively, from last year.

Any recent changes in analyst estimates for Sony should also be noted by investors. These revisions generally reflect the latest short-term trading trends, which may change frequently. Therefore, we can interpret positive estimate revisions as a good sign for the company’s business outlook.

Our research shows that these estimate changes are directly correlated to short-term stock prices. Investors can take advantage of this by using the Zacks ranking. This model accounts for these estimation changes and provides a simple and actionable scoring system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive track record of outperformance verified by external audits, with #1 stocks generating an average annual return of +25% since 1988 Zacks Consensus’ EPS estimate rose 2.34% over the past month. Sony currently holds a Zacks rank of #3 (Hold).

In terms of valuation, Sony is currently trading at a Forward P/E ratio of 16.37. This represents a premium to its industry average Forward P/E of 12.06.

The audio video production industry is part of the consumer discretionary sector. This group has a Zacks Industry ranking of 211, which places it in the bottom 17% of all 250+ industries.

The Zacks Industry Ranking assesses the strength of our industry groups by measuring the average Zacks Ranking of individual stocks within the groups. Our research shows that the top 50% of industries outperform the bottom half by a factor of 2 to 1.

Be sure to track all of these stock movement metrics, and more, at Zacks.com.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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