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

Zacks Equity Research

In the latest trading session, Sony (SNE) closed at $67.76, marking a -0.47% move from the previous day. This move lagged the S&P 500's daily loss of 0.02%. Meanwhile, the Dow lost 0.13%, and the Nasdaq, a tech-heavy index, added 0.08%.

Heading into today, shares of the electronics and media company had gained 10.16% over the past month, outpacing the Consumer Discretionary sector's gain of 5.05% and the S&P 500's gain of 3.81% in that time.

SNE will be looking to display strength as it nears its next earnings release.

SNE's full-year Zacks Consensus Estimates are calling for earnings of $4.05 per share and revenue of $76.48 billion. These results would represent year-over-year changes of -37.01% and -2.09%, respectively.

Investors might also notice recent changes to analyst estimates for SNE. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

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. The Zacks Consensus EPS estimate has moved 7.87% higher within the past month. SNE is currently sporting a Zacks Rank of #1 (Strong Buy).

Investors should also note SNE's current valuation metrics, including its Forward P/E ratio of 16.83. This represents a premium compared to its industry's average Forward P/E of 15.97.

Meanwhile, SNE's PEG ratio is currently 2.18. 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. SNE's industry had an average PEG ratio of 1.94 as of yesterday's close.

The Audio Video Production industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 165, putting it in the bottom 36% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

To follow SNE in the coming trading sessions, be sure to utilize Zacks.com.

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