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Is Sony (SNE) a Great Value Stock Right Now?

Zacks Equity Research

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One stock to keep an eye on is Sony (SNE). SNE is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 14.65. This compares to its industry's average Forward P/E of 16.51. Over the past year, SNE's Forward P/E has been as high as 15.80 and as low as 6.87, with a median of 12.78.

Investors will also notice that SNE has a PEG ratio of 1.90. 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 currently sports an average PEG of 1.99. SNE's PEG has been as high as 2.46 and as low as 0.91, with a median of 1.82, all within the past year.

Value investors will likely look at more than just these metrics, but the above data helps show that Sony is likely undervalued currently. And when considering the strength of its earnings outlook, SNE sticks out at as one of the market's strongest value stocks.


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