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

Zacks Equity Research

Sony (SNE) closed at $67.74 in the latest trading session, marking a -0.75% move from the prior day. This change lagged the S&P 500's 0.03% gain on the day. At the same time, the Dow added 0.11%, and the tech-heavy Nasdaq gained 0.1%.

Coming into today, shares of the electronics and media company had gained 9.3% in the past month. In that same time, the Consumer Discretionary sector gained 3.47%, while the S&P 500 gained 1.82%.

Investors will be hoping for strength from SNE as it approaches 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 $76.48 billion. These totals would mark changes of -37.01% and -2.09%, respectively, from last year.

Any recent changes to analyst estimates for SNE should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 7.58% higher. SNE is currently sporting a Zacks Rank of #1 (Strong Buy).

In terms of valuation, SNE is currently trading at a Forward P/E ratio of 16.87. This valuation marks a premium compared to its industry's average Forward P/E of 16.5.

It is also worth noting that SNE currently has a PEG ratio of 2.19. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. 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 industry currently has a Zacks Industry Rank of 79, which puts it in the top 31% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

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