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Sony (SONY) Stock Moves -1.64%: What You Should Know

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Sony (SONY - Free Report) closed at $88.06 in the latest trading session, marking a -1.64% move from the prior day. This change was narrower than the S&P 500's 2.91% loss on the day. Elsewhere, the Dow lost 2.73%, while the tech-heavy Nasdaq lost 0.25%.

Heading into today, shares of the electronics and media company had gained 6.71% over the past month, outpacing the Consumer Discretionary sector's gain of 4.11% and the S&P 500's gain of 0.84% in that time.

Sony will be looking to display strength as it nears its next earnings release. In that report, analysts expect Sony to post earnings of $1.17 per share. This would mark a year-over-year decline of 24.52%. Meanwhile, our latest consensus estimate is calling for revenue of $18.7 billion, down 9.33% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.28 per share and revenue of $92.93 billion. These totals would mark changes of 0% and +5.23%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Sony. 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.

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.

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 1.2% lower. Sony is currently a Zacks Rank #3 (Hold).

Digging into valuation, Sony currently has a Forward P/E ratio of 14.26. This represents a premium compared to its industry's average Forward P/E of 11.13.

Also, we should mention that SONY has a PEG ratio of 2.97. 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 industry currently 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 group has a Zacks Industry Rank of 189, putting it in the bottom 26% 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.

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


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