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Sony (SNE) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research
CenturyLink (CTL) closed the most recent trading day at $11.35, moving +0.18% from the previous trading session.

Sony (SNE) closed the most recent trading day at $44.01, moving +1.69% from the previous trading session. The stock outpaced the S&P 500's daily gain of 1.09%. Meanwhile, the Dow gained 0.84%, and the Nasdaq, a tech-heavy index, added 1.42%.

Prior to today's trading, shares of the electronics and media company had lost 7.68% over the past month. This has lagged the Consumer Discretionary sector's loss of 1.47% and the S&P 500's gain of 1.18% in that time.

SNE will be looking to display strength as it nears its next earnings release. In that report, analysts expect SNE to post earnings of $0.19 per share. This would mark year-over-year growth of 258.33%.

Any recent changes to analyst estimates for SNE should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, SNE is currently trading at a Forward P/E ratio of 7.83. This represents a discount compared to its industry's average Forward P/E of 8.58.

Investors should also note that SNE has a PEG ratio of 0.96 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 industry currently had an average PEG ratio of 1.53 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 100, putting it in the top 40% 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.

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


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