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

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Sony (SONY) closed at $85.49 in the latest trading session, marking a -1.69% move from the prior day. This change lagged the S&P 500's daily gain of 0.13%. Elsewhere, the Dow gained 0.28%, while the tech-heavy Nasdaq lost 0.04%.

Heading into today, shares of the electronics and media company had gained 1.54% over the past month, lagging the Consumer Discretionary sector's gain of 7.82% and the S&P 500's gain of 5.55% in that time.

Investors will be hoping for strength from Sony as it approaches 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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 3.74% lower. Sony is currently a Zacks Rank #3 (Hold).

Investors should also note Sony's current valuation metrics, including its Forward P/E ratio of 14.81. Its industry sports an average Forward P/E of 14.81, so we one might conclude that Sony is trading at a no noticeable deviation comparatively.

It is also worth noting that SONY currently has a PEG ratio of 3.09. 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. SONY's industry had an average PEG ratio of 1.78 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 97, which puts it in the top 39% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

To follow SONY in the coming trading sessions, be sure to utilize Zacks.com.


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