Sony (SONY) closed the latest trading day at $26, indicating a +0.97% change from the previous session's end. The stock's change was more than the S&P 500's daily gain of 0.15%. Elsewhere, the Dow gained 0.35%, while the tech-heavy Nasdaq lost 0.09%.

Shares of the electronics and media company have appreciated by 2.3% over the course of the past month, outperforming the Consumer Discretionary sector's gain of 0.88% and the S&P 500's loss of 0.21%.

Market participants will be closely following the financial results of Sony in its upcoming release. On that day, Sony is projected to report earnings of $0.12 per share, which would represent a year-over-year decline of 42.86%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $20.4 billion, down 13.03% from the year-ago period.

Investors should also note any recent changes to analyst estimates for Sony. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.12% increase. Sony presently features a Zacks Rank of #1 (Strong Buy).

Digging into valuation, Sony currently has a Forward P/E ratio of 17.83. This denotes a discount relative to the industry's average Forward P/E of 18.96.

Meanwhile, SONY's PEG ratio is currently 9.96. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. SONY's industry had an average PEG ratio of 9.96 as of yesterday's close.

The Audio Video Production industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 48, positioning it in the top 20% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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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Sony Corporation (SONY) : Free Stock Analysis Report

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

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