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Sony (SONY) Gains As Market Dips: What You Should Know

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In the latest trading session, Sony (SONY) closed at $82.21, marking a +0.07% move from the previous day. This move outpaced the S&P 500's daily loss of 0.84%. At the same time, the Dow lost 0.69%, and the tech-heavy Nasdaq lost 0.07%.

Coming into today, shares of the electronics and media company had lost 2.2% in the past month. In that same time, the Consumer Discretionary sector lost 0.81%, while the S&P 500 gained 2.02%.

Sony will be looking to display strength as it nears its next earnings release, which is expected to be July 29, 2022. The company is expected to report EPS of $1.15, down 25.81% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $19.36 billion, down 6.09% from the year-ago period.

SONY's full-year Zacks Consensus Estimates are calling for earnings of $5.87 per share and revenue of $89.54 billion. These results would represent year-over-year changes of -6.53% and +1.39%, respectively.

It is also important to note the recent changes to analyst estimates for Sony. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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.

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. Over the past month, the Zacks Consensus EPS estimate has moved 3.74% lower. Sony is currently a Zacks Rank #5 (Strong Sell).

Investors should also note Sony's current valuation metrics, including its Forward P/E ratio of 13.99. Its industry sports an average Forward P/E of 13.99, so we one might conclude that Sony is trading at a no noticeable deviation comparatively.

Meanwhile, SONY's PEG ratio is currently 2.91. 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. The Audio Video Production was holding an average PEG ratio of 1.66 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 204, which puts it in the bottom 20% 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.

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


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