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Sony (SNE) Dips More Than Broader Markets: What You Should Know

Zacks Equity Research
·3 min read

Sony (SNE) closed the most recent trading day at $71.80, moving -0.31% from the previous trading session. This move lagged the S&P 500's daily loss of 0.09%. Elsewhere, the Dow gained 0.04%, while the tech-heavy Nasdaq added 0.06%.

Heading into today, shares of the electronics and media company had gained 5.91% over the past month, outpacing the Consumer Discretionary sector's loss of 2.04% and the S&P 500's gain of 1.26% in that time.

Investors will be hoping for strength from SNE as it approaches its next earnings release, which is expected to be February 4, 2020.

SNE's full-year Zacks Consensus Estimates are calling for earnings of $4.20 per share and revenue of $78.49 billion. These results would represent year-over-year changes of -34.68% and +0.48%, respectively.

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Any recent changes to analyst estimates for SNE should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 7.02% higher. SNE is holding a Zacks Rank of #1 (Strong Buy) right now.

Investors should also note SNE's current valuation metrics, including its Forward P/E ratio of 17.17. Its industry sports an average Forward P/E of 14.28, so we one might conclude that SNE is trading at a premium comparatively.

Also, we should mention that SNE has a PEG ratio of 2.23. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Audio Video Production was holding an average PEG ratio of 1.99 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 115, which puts it in the top 46% 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.

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


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Zacks Investment Research