Why Sony (SONY) Outpaced the Stock Market Today

In the latest trading session, Sony (SONY) closed at $20.68, marking a +2.27% move from the previous day. The stock's performance was ahead of the S&P 500's daily gain of 1.15%. On the other hand, the Dow registered a gain of 1.38%, and the technology-centric Nasdaq increased by 1.38%.

Shares of the electronics and media company have depreciated by 7.8% over the course of the past month, underperforming the Consumer Discretionary sector's loss of 5.49%, and the S&P 500's loss of 5.69%.

Market participants will be closely following the financial results of Sony in its upcoming release. The company's earnings per share (EPS) are projected to be $0.14, reflecting a 33.33% decrease from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $17.99 billion, reflecting a 4.29% rise from the equivalent quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.24 per share and a revenue of $78.42 billion, representing changes of +0.81% and -7.79%, respectively, from the prior year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Sony. 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 business outlook.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. At present, Sony boasts a Zacks Rank of #3 (Hold).

In the context of valuation, Sony is at present trading with a Forward P/E ratio of 16.31. This denotes a premium relative to the industry average Forward P/E of 10.93.

Meanwhile, SONY's PEG ratio is currently 7.18. 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 average PEG ratio for the Audio Video Production industry stood at 7.18 at the close of the market yesterday.

The Audio Video Production industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 25, finds itself in the top 11% echelons of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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