Sony (SONY) Stock Slides as Market Rises: Facts to Know Before You Trade

Sony (SONY) closed the most recent trading day at $27.71, moving -2.05% from the previous trading session. The stock's performance was behind the S&P 500's daily gain of 0.13%. At the same time, the Dow added 0.16%, and the tech-heavy Nasdaq lost 0.22%.

The electronics and media company's stock has dropped by 5.19% in the past month, exceeding the Consumer Discretionary sector's loss of 6.16% and lagging the S&P 500's loss of 0.2%.

The investment community will be closely monitoring the performance of Sony in its forthcoming earnings report. In that report, analysts expect Sony to post earnings of $0.33 per share. This would mark a year-over-year decline of 10.81%. Alongside, our most recent consensus estimate is anticipating revenue of $20.04 billion, indicating a 2.64% upward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $1.15 per share and revenue of $81.05 billion, which would represent changes of -6.5% and -4.7%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Sony. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 2.54% lower. Right now, Sony possesses a Zacks Rank of #3 (Hold).

With respect to valuation, Sony is currently being traded at a Forward P/E ratio of 24.6. This indicates no noticeable deviation in contrast to its industry's Forward P/E of 24.6.

The Audio Video Production industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 169, positioning it in the bottom 32% of all 250+ industries.

The Zacks Industry Rank is ordered 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.

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Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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This article originally published on Zacks Investment Research (zacks.com).

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