Is Sony (SNE) Stock Undervalued Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the “Value” category. Stocks with high Zacks Ranks and “A” grades for Value will be some of the highest-quality value stocks on the market today.
Sony (SNE) is a stock many investors are watching right now. SNE is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 11.27, which compares to its industry’s average of 12.13. Over the past year, SNE’s Forward P/E has been as high as 17.08 and as low as 10.78, with a median of 13.
SNE is also sporting a PEG ratio of 1.12. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company’s expected earnings growth rate. SNE’s PEG compares to its industry’s average PEG of 1.19. Within the past year, SNE’s PEG has been as high as 2.68 and as low as 1.07, with a median of 1.87.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Sony is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, SNE feels like a great value stock at the moment.
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