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

Zacks Equity Research

Sony (SNE) closed at $68.08 in the latest trading session, marking a -1.42% move from the prior day. This change lagged the S&P 500's daily loss of 0.71%. At the same time, the Dow lost 0.81%, and the tech-heavy Nasdaq lost 0.79%.

Prior to today's trading, shares of the electronics and media company had gained 5.92% over the past month. This has outpaced the Consumer Discretionary sector's gain of 5.58% and the S&P 500's gain of 4.77% in that time.

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

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.05 per share and revenue of $74.09 billion. These totals would mark changes of -37.01% and -5.15%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for SNE. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. SNE currently has a Zacks Rank of #1 (Strong Buy).

Digging into valuation, SNE currently has a Forward P/E ratio of 17.07. This represents a premium compared to its industry's average Forward P/E of 16.17.

Investors should also note that SNE has a PEG ratio of 2.21 right now. 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. The Audio Video Production was holding an average PEG ratio of 1.97 at yesterday's closing price.

The Audio Video Production industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 169, which puts it in the bottom 34% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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