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

Zacks Equity Research

Sony (SNE) closed the most recent trading day at $71.60, moving -1.2% from the previous trading session. This change lagged the S&P 500's 0.19% gain on the day. At the same time, the Dow added 0.31%, and the tech-heavy Nasdaq gained 0.08%.

Prior to today's trading, shares of the electronics and media company had gained 6.98% over the past month. This has outpaced the Consumer Discretionary sector's gain of 4.39% and the S&P 500's gain of 3.72% in that time.

Wall Street will be looking for positivity from SNE as it approaches its next earnings report date. This is expected to be February 4, 2020.

SNE's full-year Zacks Consensus Estimates are calling for earnings of $3.92 per share and revenue of $74.12 billion. These results would represent year-over-year changes of -39.04% and -5.11%, respectively.

Investors should also note any recent changes to analyst estimates for SNE. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. SNE is currently sporting a Zacks Rank of #1 (Strong Buy).

Looking at its valuation, SNE is holding a Forward P/E ratio of 18.49. This valuation marks a premium compared to its industry's average Forward P/E of 16.91.

Also, we should mention that SNE has a PEG ratio of 2.4. 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. Audio Video Production stocks are, on average, holding a PEG ratio of 1.97 based on yesterday's closing prices.

The Audio Video Production industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 173, putting it in the bottom 33% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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