It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.82% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Sony (SONY - Free Report) Headquartered in Tokyo, Japan, Sony Group Corporation designs, manufactures and sells several types of consumer and industrial electronic equipment. The company’s product roster comprises audio and video equipment, televisions, network services, game hardware and software, mobile phones and image sensors. Additionally, Sony is active in the production, acquisition and distribution of recorded music and the management and licensing of the words and music for songs.
SONY is a #2 (Buy) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 18.04; value investors should take notice.
One analyst revised their earnings estimate upwards in the last 60 days for fiscal 2027. The Zacks Consensus Estimate has increased $0.04 to $1.45 per share. SONY boasts an average earnings surprise of +13.1%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, SONY should be on investors' short list.
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Sony (SONY - Free Report) ended the recent trading session at $24.69, demonstrating a +1.35% change from the preceding day's closing price. The stock's change was more than the S&P 500's daily gain of 0.33%. Elsewhere, the Dow gained 1.08%, while the tech-heavy Nasdaq added 0.08%.
Prior to today's trading, shares of the electronics and media company had gained 2.65% outpaced the Consumer Discretionary sector's loss of 3.52% and the S&P 500's gain of 1.41%.
Market participants will be closely following the financial results of Sony in its upcoming release. The company plans to announce its earnings on November 5, 2026. The company is predicted to post an EPS of $0.38, indicating a 8.57% growth compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $19.93 billion, reflecting a 5.46% fall from the equivalent quarter last year.
SONY's full-year Zacks Consensus Estimates are calling for earnings of $1.45 per share and revenue of $81.26 billion. These results would represent year-over-year changes of +27.19% and -1.98%, respectively.
Investors should also note any recent changes to analyst estimates for Sony. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 2.83% increase. Currently, Sony is carrying a Zacks Rank of #2 (Buy).
Investors should also note Sony's current valuation metrics, including its Forward P/E ratio of 16.77. This expresses a premium compared to the average Forward P/E of 14.77 of its industry.
We can also see that SONY currently has a PEG ratio of 1.59. 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. SONY's industry had an average PEG ratio of 1.59 as of yesterday's close.
The Audio Video Production industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 183, finds itself in the bottom 26% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Sony (SONY - Free Report) ended the recent trading session at $23.95, demonstrating a +1.83% change from the preceding day's closing price. This change outpaced the S&P 500's 0.47% loss on the day. At the same time, the Dow added 0.1%, and the tech-heavy Nasdaq lost 1.25%.
The electronics and media company's shares have seen an increase of 0.34% over the last month, surpassing the Consumer Discretionary sector's loss of 2.96% and falling behind the S&P 500's gain of 1.15%.
The investment community will be paying close attention to the earnings performance of Sony in its upcoming release. The company's earnings per share (EPS) are projected to be $0.38, reflecting a 8.57% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $19.93 billion, showing a 5.46% drop compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $1.45 per share and revenue of $81.26 billion, which would represent changes of +27.19% and -1.98%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Sony. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 moved 2.83% higher. At present, Sony boasts a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Sony has a Forward P/E ratio of 16.19 right now. This denotes a premium relative to the industry average Forward P/E of 14.89.
It's also important to note that SONY currently trades at a PEG ratio of 1.53. 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 average PEG ratio for the Audio Video Production industry stood at 1.53 at the close of the market yesterday.
The Audio Video Production industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 236, which puts it in the bottom 5% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.86% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Sony (SONY - Free Report) Headquartered in Tokyo, Japan, Sony Group Corporation designs, manufactures and sells several types of consumer and industrial electronic equipment. The company’s product roster comprises audio and video equipment, televisions, network services, game hardware and software, mobile phones and image sensors. Additionally, Sony is active in the production, acquisition and distribution of recorded music and the management and licensing of the words and music for songs.
SONY is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
Momentum investors should take note of this Consumer Discretionary stock. SONY has a Momentum Style Score of A, and shares are up 1.4% over the past four weeks.
Two analysts revised their earnings estimate higher in the last 60 days for fiscal 2027, while the Zacks Consensus Estimate has increased $0.05 to $1.45 per share. SONY also boasts an average earnings surprise of +13.1%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, SONY should be on investors' short list.
NYSE issues a pre-market daily advisory direct from the trading floor. NEW YORK, Oct. 5, 2026 /PRNewswire/ -- The New York Stock Exchange (NYSE) provides a daily pre-market update directly from the NYSE Trading Floor.
In the latest close session, Sony (SONY - Free Report) was up +1.4% at $23.82. The stock outperformed the S&P 500, which registered a daily gain of 0.73%. Meanwhile, the Dow gained 0.49%, and the Nasdaq, a tech-heavy index, added 1.19%.
Heading into today, shares of the electronics and media company had lost 5.89% over the past month, outpacing the Consumer Discretionary sector's loss of 6.5% and lagging the S&P 500's gain of 0.55%.
Market participants will be closely following the financial results of Sony in its upcoming release. At the same time, our most recent consensus estimate is projecting a revenue of $19.93 billion, reflecting a 5.46% fall from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.41 per share and a revenue of $81.26 billion, signifying shifts of +23.68% and -1.98%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for Sony. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
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.
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 past month, the Zacks Consensus EPS estimate has remained steady. Sony is currently a Zacks Rank #3 (Hold).
With respect to valuation, Sony is currently being traded at a Forward P/E ratio of 16.63. Its industry sports an average Forward P/E of 15.39, so one might conclude that Sony is trading at a premium comparatively.
One should further note that SONY currently holds a PEG ratio of 1.7. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Audio Video Production industry held an average PEG ratio of 1.7.
The Audio Video Production industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 233, finds itself in the bottom 6% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.86% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Sony (SONY - Free Report) Headquartered in Tokyo, Japan, Sony Group Corporation designs, manufactures and sells several types of consumer and industrial electronic equipment. The company’s product roster comprises audio and video equipment, televisions, network services, game hardware and software, mobile phones and image sensors. Additionally, Sony is active in the production, acquisition and distribution of recorded music and the management and licensing of the words and music for songs.
SONY is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 16.63; value investors should take notice.
Three analysts revised their earnings estimate higher in the last 60 days for fiscal 2027, while the Zacks Consensus Estimate has increased $0.13 to $1.41 per share. SONY also boasts an average earnings surprise of +13.1%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, SONY should be on investors' short list.
The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?
Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Sony (SONY - Free Report) .
Sony currently has an average brokerage recommendation (ABR) of 1.25, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 12 brokerage firms. An ABR of 1.25 approximates between Strong Buy and Buy.
Of the 12 recommendations that derive the current ABR, 10 are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 83.3% and 8.3% of all recommendations.
Brokerage Recommendation Trends for SONY
Check price target & stock forecast for Sony here>>>
The ABR suggests buying Sony, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.
Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.
This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.
With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.
Zacks Rank Should Not Be Confused With ABRAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
Is SONY a Good Investment?In terms of earnings estimate revisions for Sony, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $1.41.
Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Sony. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for Sony.
Sony (SONY - Free Report) ended the recent trading session at $23.55, demonstrating a +2.44% change from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily gain of 0.51%. Elsewhere, the Dow saw an upswing of 0.93%, while the tech-heavy Nasdaq appreciated by 0.48%.
The electronics and media company's shares have seen a decrease of 4.49% over the last month, surpassing the Consumer Discretionary sector's loss of 8.98% and falling behind the S&P 500's gain of 0.74%.
The investment community will be closely monitoring the performance of Sony in its forthcoming earnings report. In the meantime, our current consensus estimate forecasts the revenue to be $19.93 billion, indicating a 5.46% decline compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.41 per share and a revenue of $81.26 billion, signifying shifts of +23.68% and -1.98%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for Sony. 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 business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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 last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Sony is holding a Zacks Rank of #2 (Buy) right now.
Looking at valuation, Sony is presently trading at a Forward P/E ratio of 16.28. This indicates a premium in contrast to its industry's Forward P/E of 14.1.
Investors should also note that SONY has a PEG ratio of 1.66 right now. 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. SONY's industry had an average PEG ratio of 1.66 as of yesterday's close.
The Audio Video Production industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 208, placing it within the bottom 16% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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.
Sony (SONY - Free Report) ended the recent trading session at $23.46, demonstrating a -1.55% change from the preceding day's closing price. The stock's performance was behind the S&P 500's daily gain of 0.17%. On the other hand, the Dow registered a loss of 0.18%, and the technology-centric Nasdaq increased by 0.4%.
Prior to today's trading, shares of the electronics and media company had gained 1.06% outpaced the Consumer Discretionary sector's loss of 5.4% and the S&P 500's loss of 1.29%.
Investors will be eagerly watching for the performance of Sony in its upcoming earnings disclosure. Meanwhile, our latest consensus estimate is calling for revenue of $19.93 billion, down 5.46% from the prior-year quarter.
SONY's full-year Zacks Consensus Estimates are calling for earnings of $1.41 per share and revenue of $81.26 billion. These results would represent year-over-year changes of +23.68% and -1.98%, respectively.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Sony. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
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 remained steady. Sony is holding a Zacks Rank of #2 (Buy) right now.
Looking at its valuation, Sony is holding a Forward P/E ratio of 16.87. This expresses a premium compared to the average Forward P/E of 13.86 of its industry.
Investors should also note that SONY has a PEG ratio of 1.72 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Audio Video Production stocks are, on average, holding a PEG ratio of 1.72 based on yesterday's closing prices.
The Audio Video Production industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 188, this industry ranks in the bottom 24% of all industries, numbering over 250.
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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Movie theater companies like AMC Entertainment Holdings (NYSE:AMC) and Cinemark Holdings (NYSE:CNK) are likely benefitting from the record-setting summer box office results of Sony Group‘s (NYSE:SONY) "Spider-Man: Brand New Day."
The film recently surpassed "Star Wars: The Force Awakens" to become the highest-grossing domestic film of all time with $936.77 million at the box office, Variety reported.
Globally, the film ranks third with $2.45 billion, trailing "Avatar" and "Avengers: Endgame" at $2.9 billion and $2.7 billion respectively. "Endgame" ranks third domestically ($858.4 million).
Sony, Disney Share SpideySony splits the big-screen ownership of Spider-Man with Disney thanks to a strategic gamble it made in 1998. This means Sony won’t enjoy all of the box office money or merchandise and licensing revenue.
“Brand New Day” is the first live-action Spider-Man film since 2021, making the comparables tough from a financial perspective.
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The Sony Pictures segment is one of the company’s lowest in terms of sales, often outpaced by Game & Network, Music, Entertainment & Technology, and Imaging & Sensing. The upcoming second-quarter results, expected in November, will include the box office run of the record-breaking Spider-Man film.
In the first quarter, the Pictures segment saw year-over-year sales decline.
As the smallest segment, the question is whether the big year-over-year increase in the Pictures segment in the second quarter could boost the stock.
M&A SpeculationSony stock is up 2.1% since July 30, the day before "Spider-Man: Brand New Day" debuted in theaters. The stock trails the S&P 500’s 2.6% return over the same period.
The rapid consolidation across the studio sector — most recently Paramount Skydance’s (NASDAQ:PSKY) $8.45 billion bid for Warner Bros. Discovery (NASDAQ:WBD) — often fuels speculation that Sony would sell or spin off its Pictures business. So far, Sony has resisted.
The latest record-breaking film could show that Sony’s unit is undervalued and can’t move the parent company’s overall needle, even with huge box-office results.
Time will tell whether Spider-Man’s new record will boost Sony stock after earnings and into the future.
What’s NextNext up is "Avengers: Doomsday" from The Walt Disney Company (NYSE:DIS), set for release in theaters on Dec. 18. The new Avengers film has already secured over $50 million in advance ticket sales, which is below the $150 million "Brand New Day" had, but there are still several months to go.
"Avengers: Endgame" also gets a re-release in theaters on Sept. 25, which could put the film’s domestic gross closer to the newest Spider-Man film and build hype for the latest Avengers film.
Sony is undervalued, with its high-margin Imaging & Sensing Solutions (I&SS) segment driven by secular growth and a robust competitive moat. Deconsolidation of financial services has created a cleaner, higher-margin entertainment and tech company, freeing capital for R&D, content, and buybacks. The TSM joint venture strengthens Sony's sensor leadership, enabling advanced product development and cost advantages in a fast-growing market.
Streaming has moved beyond the race for subscriber additions and is increasingly becoming a contest for engagement, advertising dollars and content discovery. The shift is visible in viewing trends. Nielsen reported that streaming captured 48.2% of U.S. ad-supported TV viewing in the second quarter of 2026, widening its lead over cable and broadcast. This underscores how connected-TV platforms are gaining importance for both audiences and marketers.
Against this backdrop, Alphabet Inc. (GOOGL - Free Report) , Amazon.com, Inc. (AMZN - Free Report) and Sony Group Corporation (SONY - Free Report) warrant attention as streaming develops into a broader ecosystem spanning distribution, advertising, premium programming and direct-to-consumer services. Their varied exposure provides investors with different ways to participate in the migration of viewing time and ad spending toward digital video while also benefiting from demand for differentiated entertainment experiences.
Live sports should remain a major catalyst for engagement. Gracenote data showed sports offerings across five leading subscription streaming services jumped 52% year over year in February 2026. FAST is also expanding rapidly, with individual sports games and events distributed across free ad-supported streaming services rising 37.5% year over year in the third quarter, highlighting the growing importance of sports beyond traditional pay-TV.
The outlook remains constructive as connected-TV usage, ad-supported services and global appetite for premium and niche content expand. Artificial intelligence is also becoming increasingly important across the streaming value chain, helping platforms improve content recommendations, audience targeting, ad placement and production efficiency. However, higher sports-rights and programming costs, intense competition, subscriber churn and fragmented viewing habits could pressure returns. Companies that combine compelling content with AI-driven personalization, broad distribution and stronger advertising monetization should be better positioned as the industry matures.
If you’re looking to tap into this fast-growing trend, our Streaming Content Thematic Screen offers a simple way to spot promising stocks in the sector. Designed with advanced analytics, the screen highlights companies driving industry transformation, helping investors stay ahead of emerging opportunities.
Ready to uncover more transformative thematic investment ideas? Explore 40 cutting-edge investment themes with Zacks Thematic Investing Screens and discover your next big opportunity.
Amazon’s streaming journey began with Unbox in 2006, followed by unlimited Prime streaming in 2011. Today, Prime Video has evolved into an entertainment platform spanning originals, licensed programming, live sports, rentals, third-party subscriptions and more than 900 U.S. FAST channels.
The investment case has strengthened as Prime Video moves beyond being a Prime-retention tool. CEO Andy Jassy said in May 2026 that the business is growing, profitable and still early, suggesting room to expand engagement and monetization over time.
Live sports should remain a major growth driver. Prime Video carries NFL Thursday Night Football, NBA, WNBA, NASCAR, the Masters and other rights across markets. These events attract viewing, while Amazon’s shopping, browsing and streaming signals can make advertising inventory more measurable and valuable.
Content ownership adds another layer of strength. AMZN expanded its content ownership, most notably through the $8.45 billion MGM transaction. MGM brought more than 4,000 films and 17,000 TV episodes, while Amazon MGM Studios now has creative control of James Bond. A larger theatrical pipeline can eventually feed Prime Video and could lower dependence on licensed hits over time.
International expansion adds further upside for this Zacks Rank #2 (Buy) company. Amazon is integrating MX Player into Prime Video in India and plans to invest more than $2 billion in Latin America from 2027 through 2030. Combined with sports, owned franchises and commerce-linked advertising, Prime Video looks positioned to become a larger long-term profit engine. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Sony’s streaming history stretches back to 2006, when Sony Pictures acquired video site Grouper. Its current direct-to-consumer strategy expanded through SonyLIV in India, Sony’s 2017 acquisition of Funimation and the 2021 purchase of Crunchyroll, which became Sony’s global anime-streaming platform.
Crunchyroll is now the strongest growth engine in Sony’s streaming portfolio. Paid subscribers surpassed 21 million by March 2026, and Sony said in July that subscriptions continued growing beyond that level. This momentum shows the service still has room to add paying users.
The addressable market remains large. Sony estimates more than 1.5 billion online streaming viewers were watching or interested in anime in 2025 across measured markets, with penetration still low. This creates a long runway for Crunchyroll to convert more anime viewers into recurring subscribers worldwide.
The platform is also becoming more competitive as its streaming library expands. By March 2026, Crunchyroll offered more than 50,000 episodes, subtitled and dubbed in 13 languages. A deeper, localized catalog should support discovery and retention while making the service more relevant internationally.
For investors, Sony’s streaming thesis is attractive. Crunchyroll combines subscriber momentum, low penetration and a broad international catalog, while SonyLIV adds a general-entertainment streaming presence in India. Together, these services give Sony multiple paths to expand recurring digital revenues and build a larger streaming business over time. SONY holds a Zacks Rank #2.
Alphabet’s streaming roots trace to Google’s 2006 acquisition of YouTube, launched a year earlier. YouTube has since evolved from a user-video site into a broad platform spanning long-form video, Shorts, music, livestreams, connected-TV viewing, subscriptions and live sports.
The biggest long-term advantage is audience scale across screens. Nielsen reported YouTube at 13.8% of total U.S. TV watch time in June 2026, still the largest media distributor. Shorts also averages more than 200 billion daily views, feeding discovery across YouTube’s wider content ecosystem.
Monetization is becoming more diversified. YouTube generated more than $60 billion from advertising and subscriptions in 2025, while management said in second-quarter 2026 that subscriptions are growing faster than ads, led by YouTube Music and Premium. This adds recurring revenues while preserving a powerful advertising engine.
YouTube TV strengthens the thesis further. In 2026, Alphabet rolled out more than 10 lower-priced specialized plans, added ESPN Unlimited directly to YouTube TV on Sept. 1 and expanded Peacock availability through Primetime Channels. Primetime Channels now offers more than 45 services.
YouTube is positioned as both a destination and an aggregator. Its creator supply, living-room reach, sports, subscription options and partner catalog reinforce one another, giving Alphabet several ways to capture rising streaming time and spending. This supports a durable growth runway for GOOGL. It carries a Zacks Rank #3 (Hold).
Sony Pictures Entertainment’s chairman- CEO Ravi Ahuja said the company’s restoration of the historic Cinerama Dome and reopening of the adjacent 14-screen former ArcLight Hollywood complex is a great way to expand the company’s brand without “mega M&A.”
“Large scale M&A is extremely disruptive,” he told the Bank of America media conference on Wednesday. “It can set you back for years.” He didn’t specifically mention the ongoing Paramount-Warner Bros. Discovery merger saga, but that’s very much in the air as the deal is challenged by state AGs with a March trial date and costs mounting.
SPE is focused on smaller, targeted projects like its 2024 acquisitions of the Alamo Drafthouse movie chain, which will manage the former multi-screen ArcLight with typical panache including a Jeopardy-themed bar and karaoke rooms based around Sony IP. Meanwhile, restoration work started last month on the historic Cinerama Dome with an early 2028 reopening date in mind.
The division of Japanese giant Sony Corp. recently unveiled a $100 million investment and minority ownership in immersive entertainment company Cosm.
It did make a run at Paramount before David Ellison’s Skydance acquired Shari Redstone’s ownership stake in the company. Asked about that, Ahuja said, “We were interested in it briefly, but in the IP” with plans for PE giant Apollo to take the cable assets. “IP will always be interesting to us [but] mega M&A, large scale is not a priority … The industry is evolving and you have to position yourself for how it is gong to evolve and not drown in M&A.”
SPE, currently riding a massive box office hit in Spider-Man: Brand New Day amid a newly rejuvenated box office, is one of the few independent film and television studios, which Ahuja says has served it well. He said the television market is also picking back up” from library sales to the original scripted side. “We have more in development now than we have in years. That is the first indicator.”
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
#1 (Strong Buy) stocks have produced an unmatched +23.8% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Sony (SONY - Free Report) Headquartered in Tokyo, Japan, Sony Group Corporation designs, manufactures and sells several consumer and industrial electronic equipment. The company’s product roster comprises audio and video equipment, televisions, network services, game hardware and software, mobile phones and image sensors. Additionally, Sony is active in the production, acquisition and distribution of recorded music and the management and licensing of the words and music for songs.
SONY is a #2 (Buy) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 17.39; value investors should take notice.
Three analysts revised their earnings estimate higher in the last 60 days for fiscal 2027, while the Zacks Consensus Estimate has increased $0.13 to $1.41 per share. SONY also boasts an average earnings surprise of +13.1%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, SONY should be on investors' short list.
Sony Group Corporation is reinforced by a robust IP portfolio, driving resilience against AI disruption and unlocking licensing opportunities. SONY's synergistic entertainment ecosystem, spanning music, movies, gaming, and technology, is delivering strong operating results and engagement metrics. The upcoming GTA 6 launch is a major catalyst, expected to boost hardware sales, subscriptions, and ecosystem engagement, enhancing lifetime customer value.
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Sony (SONY - Free Report) .
Sony currently has an average brokerage recommendation (ABR) of 1.25, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 12 brokerage firms. An ABR of 1.25 approximates between Strong Buy and Buy.
Of the 12 recommendations that derive the current ABR, 10 are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 83.3% and 8.3% of all recommendations.
Brokerage Recommendation Trends for SONY
Check price target & stock forecast for Sony here>>>
While the ABR calls for buying Sony, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.
Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.
ABR Should Not Be Confused With Zacks RankAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.
Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.
There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
Is SONY a Good Investment?Looking at the earnings estimate revisions for Sony, the Zacks Consensus Estimate for the current year has increased 1.3% over the past month to $1.41.
Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Sony. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, the Buy-equivalent ABR for Sony may serve as a useful guide for investors.
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
#1 (Strong Buy) stocks have produced an unmatched +23.8% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Sony (SONY - Free Report) Headquartered in Tokyo, Japan, Sony Group Corporation designs, manufactures and sells several consumer and industrial electronic equipment. The company’s product roster comprises audio and video equipment, televisions, network services, game hardware and software, mobile phones and image sensors. Additionally, Sony is active in the production, acquisition and distribution of recorded music and the management and licensing of the words and music for songs.
SONY is a #2 (Buy) on the Zacks Rank, with a VGM Score of A.
Momentum investors should take note of this Consumer Discretionary stock. SONY has a Momentum Style Score of A, and shares are up 11% over the past four weeks.
For fiscal 2027, three analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.13 to $1.41 per share. SONY boasts an average earnings surprise of +13.1%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, SONY should be on investors' short list.
A YouTube creator famous for gaming content just became the largest shareholder of a struggling action-camera company trading below a dollar, and the market reacted in a way that raises serious questions about what is actually holding GoPro together.
GoPro (NASDAQ:GPRO) stock is surging Monday morning after Bloomberg reported that YouTube creator Mark Fischbach, known online as Markiplier, has become the company’s largest single shareholder. GoPro stock is up 22% to $0.73 in midday trading, an outsized reaction for a sub-$1 microcap that has struggled to hold investor attention for the better part of two years.
The broader market is quiet by comparison. The SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is down 0.6% to $764.93, so today’s action in GoPro shares is squarely idiosyncratic and driven by a single ownership disclosure rather than any macro tailwind. Through Friday’s close, GoPro stock was down 57% year to date (YTD), which puts the size of Monday’s move into perspective.
Markiplier Stake Sparks the Rally Bloomberg reported that Fischbach has acquired an 8.5% stake in GoPro, an unusual disclosure for a retail-facing creator whose audience overlaps heavily with the company’s core action-camera customer. He isn’t taking an activist posture. Fischbach described the position as a conviction buy in a company he uses and wants to see survive, and there’s no indication he is seeking board representation or operational change.
In his own words, “I saw the stock and where it was, I was like that seems undervalued.” Fischbach added, “It’s just something I’ve been cooking in the background; I want the company to succeed.” Fischbach separately moved into filmmaking this year with the horror release Iron Lung, which took more than $50 million at the box office against a $3 million budget, giving him a fresh capital base to deploy.
Small Stake, Outsized Move The reaction underscores how thinly supported GoPro shares have become. The company is currently valued at roughly $110 million, against a valuation of about $13 billion twelve years ago. That collapse frames why an 8.5% position from a single high-profile buyer can move the stock in double digits within a single session.
GoPro’s fundamentals remain difficult. The company lost $51 million last quarter, with Q2 2026 revenue of $104.93 million, down 31.3% year over year (YoY). Camera unit sell-through fell 38% to roughly 291,000 units, and management disclosed substantial doubt about its ability to continue as a going concern. GoPro has laid off 23% of its workforce this year and explored selling the company. Founder and Chief Executive Officer Nick Woodman has lent the company money through stock purchases.
Scale Peers Set the Backdrop GoPro’s real problem is the competitive geometry. Sony Group (NYSE:SONY | SONY Price Prediction) dominates the imaging-sensor supply chain that action cameras depend on, and Garmin (NYSE:GRMN) has quietly built a dominant franchise in outdoor, fitness, and adventure devices. Both are order-of-magnitude larger listed players, and GoPro is competing for shelf space, developer attention, and R&D dollars against them without the scale to match.
That backdrop is why a supportive shareholder disclosure lands as a sentiment event rather than a structural fix. An 8.5% stake in a company valued near $110 million is modest in absolute terms, and it doesn’t address the quarterly cash burn, the stockholders’ deficit, or the listing question. GoPro stock has been trading below $1 per share, which puts it out of compliance with Nasdaq listing requirements, and clearing that hurdle depends on the share price recovering and holding, and a single-name endorsement alone won’t move the needle.
What to Watch Investors will watch for whether Monday’s move can hold through the session, since a single-buyer rally in a sub-$1 name often gives back a meaningful share of its opening gain by the closing bell. The more durable question is what the board’s ongoing strategic review produces, given the going-concern language and the pace of cash burn.
Position sizing needs to be top-of-mind here. A sub-$1 stock that moves 20% on a single shareholder disclosure carries the volatility of a name with very little support underneath it, and the listing question remains open, so any exposure should be sized to assume the move can fully reverse (we wrote a free playbook on fencing off speculative bets with just 5% of a portfolio, along with the sizing rules that keep them from hurting, here). A single supportive shareholder is a sentiment event, and the balance-sheet issues stand where they did on Friday.
Contact [email protected] for any questions or corrections.
The Zacks Audio Video Production industry is facing quite a few challenges. Hardware demand remains cyclical and sensitive to consumer spending. Global macroeconomic uncertainty stemming from escalating trade tensions, tariffs and associated inflationary pressure is likely to keep consumer spending in check. This does not augur well for the participants. A highly promotional environment and stiff competition from importers of comparatively low-priced devices are denting margins. Online accessibility of recording equipment and the availability of distribution channels on the Internet are additional headwinds.
Nonetheless, participants like Sony Group Corporation (SONY - Free Report) , Dolby Laboratories, Inc. (DLB - Free Report) and Sonos Inc. (SONO - Free Report) are likely to benefit from investments in cutting-edge technology solutions that drive enhanced communication experiences. The industry is moving into a phase that is marked by the convergence of content creation, immersive media (spatial audio, AR/VR and 3D video) and AI-driven workflows. Streaming, creator content, gaming, spatial audio and AI-powered tools are reimagining value creation across the industry. Rapid technological advances, such as 4K, 8K and immersive audio formats, are boosting the demand for new devices, which bodes well for participants like Dolby. The players also stand to gain as they increase focus on direct-to-customer sales channels.
Industry Description The Zacks Audio Video Production industry comprises television, speaker, video player and camcorder manufacturers. It includes companies that offer gaming consoles and high-end cameras for individuals and industrial markets. These firms provide state-of-the-art audio, imaging and voice technologies that enhance entertainment and communication experiences. Some industry participants develop audio and imaging products, including digital cinema servers and products for film production and entertainment industries. Apart from providing theatrical and television production services for cinema exhibitions, broadcast and home entertainment, these companies work with film studios, content creators, broadcasters and video game designers. Some prominent players are present in the music and image-based software markets worldwide.
3 Trends Shaping the Future of the Audio-Video Production Industry Macroeconomic Headwinds Likely to Hurt Consumer Demand: The global macroeconomic uncertainty amid escalating trade tensions and tariffs, and associated inflationary pressures, is likely to keep consumer spending, especially discretionary purchases, in check. While companies keep investing in market share gains and supply-chain resilience, a shortage of critical hardware components due to the disruption in the supply chain could hurt revenues in the near term. Fluctuations in commodity pricing for different components are additional concerns. Elevated promotional activity to boost sales amid weak spending is also affecting the performance of these industry participants.
Aggressive Competition: In the United States, smart-connected televisions, microphones and speaker enclosures are the most popular electronic devices among customers. However, U.S.-based manufacturers of audio and video systems face intense competition from importers of comparatively low-priced devices, particularly from China, Vietnam and Mexico. These firms face stiff competition across all end markets, often leading to intense price wars and margin contraction.
Technological Advancement to Spur Growth: From rapid technological advances like 4K, 8K and immersive audio formats, the demand for high-resolution visual and audio experiences is a major growth driver. The rise of streaming or OTT platforms is fueling this trend, as consumers and businesses seek to recreate a cinematic atmosphere at home. Gaming is another catalyst, as PC and console gamers now seek enhanced visuals and immersive sound design. The rise of the creator economy is also fueling the demand for enhanced cameras and editing tools. Industry players like GoPro are benefiting from this trend, as its cameras are popular among creators. Automotive audio represents another lucrative opportunity as vehicles become more software-driven and experience-focused.
Zacks Industry Rank Indicates Bleak Prospects The Zacks Audio Video Production industry is housed within the broader Zacks Consumer Discretionary sector. The industry currently has a Zacks Industry Rank of #207, placing it in the bottom 17% of more than 248 Zacks industries.
The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates bleak near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by more than two to one.
Before we present a few audio-video production stocks you may want to consider for your portfolio, let’s look at the industry’s recent stock market performance and valuation picture.
Industry Outpaces the Sector but Lags the S&P 500 The Zacks Audio Video Production industry outpaced the broader Zacks Consumer Discretionary sector, but underperformed the S&P 500 composite in the past year.
The industry has lost 10.2% over this period against the S&P 500’s 21.4% return. The broader sector has edged down 14% over the same timeframe.
One-Year Price Performance
Industry's Current Valuation Price-to-earnings is commonly used for valuing audio-video production stocks. The industry has a forward 12-month P/E of 17.65X compared with the S&P 500’s 20.22X. It is above the sector’s forward 12-month P/E of 16.62X.
In the past five years, the industry has traded as high as 23.92X and as low as 12.06X, with a median of 16.6X, as the chart below shows.
Price-to-Earnings Forward Ratio (Past Five Years)
3 Audio Video Production Stocks to Watch Sony Group Corporation: The Japan-based conglomerate designs, manufactures and sells several consumer and industrial electronic equipment. The company’s product roster comprises audio and video equipment, televisions, network services, game hardware and software, mobile phones and image sensors.
Strategic focus on entertainment and intellectual property continues to support Sony’s long-term growth strategy. Sony continues to expand its ecosystem through PlayStation, Crunchyroll, Music and Pictures while leveraging cross-platform collaborations.
For the first quarter of fiscal 2026, net sales advanced 8.2% to ¥2,837.8 billion, led by Imaging & Sensing Solutions and Music, while gaming profitability strengthened. Game & Network Services (G&NS) sales were nearly flat at ¥937.1 billion. Segment operating income climbed 37% to ¥202 billion, supported by U.S. tariff refunds and favorable forex movements.
PlayStation monthly active users reached 125 million in June 2026, up 2% year over year. Sony raised fiscal 2026 G&NS operating income guidance to ¥660 billion from ¥600 billion. Management expects major title releases later in calendar 2026 to lift engagement and has secured memory for projected PlayStation 5 sales.
Imaging & Sensing Solutions sales jumped 26% to ¥512.7 billion, while Music sales rose 21% to ¥562 billion.
At present, SONY carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for fiscal 2026 bottom line is pegged at $1.41 per share, unchanged in the past seven days. Shares have declined 9.7% in the past year.
Key Takeaways Sony integrates VITEC's Avedia player software directly into compatible BRAVIA professional displays.The player-less architecture eliminates external media players, simplifying installation and troubleshooting.The integration can turn displays into dynamic communication and revenue-generating platforms. Sony Group Corporation (SONY - Free Report) recently collaborated with VITEC to reshape how organizations deliver video, IPTV and digital signage experiences across corporate environments, entertainment venues, hospitality, healthcare and public facilities. By integrating Sony Electronics’ BRAVIA professional displays with VITEC’s Avedia IPTV and digital signage platform, the companies are offering an end-to-end solution that combines display hardware, content distribution and centralized management.
The collaboration addresses a growing challenge for organizations deploying large numbers of professional displays of how to deliver sophisticated content experiences without adding unnecessary hardware and operational complexity. The new integration brings VITEC’s IPTV player software directly onto Sony’s Android-based BRAVIA professional displays, eliminating the need for external media players.
At the center of the collaboration is a player-less IPTV architecture. VITEC’s Avedia player software can be deployed directly onto compatible Sony BRAVIA professional displays through their SoC architecture. Previously, IPTV and digital signage deployments may have required separate media players connected to every display. By moving the player functionality directly into the display, Sony and VITEC can significantly simplify deployment. Fewer external components can mean easier installation, streamlined troubleshooting and potentially lower total cost of ownership. Sony’s Android-based professional display platform also provides deployment tools designed to facilitate software installation and management, helping organizations roll out VITEC’s technology across large display fleets.
Digital signage is increasingly moving beyond simple information delivery toward personalized and commercially valuable content. The Sony-VITEC integration could help organizations use their displays as dynamic communication and revenue-generating platforms.
SONY Faces Off Against These Key RivalsDolby Laboratories, Inc.’s (DLB - Free Report) long-term case rests on broader adoption of Dolby Atmos and Dolby Vision across streaming, social media, televisions and vehicles, while the video distribution program and Dolby OptiView extend monetization beyond device licensing. During the fiscal third quarter, the 2026 FIFA World Cup was available in Dolby through partners across multiple countries. Dolby Vision 2 is now in market on some Hisense televisions, with TCL and Philips expected to ship models by the end of calendar 2026. Canal+ and Peacock are also integrating the format. Adoption is moving into new categories, with RayNeo launching Dolby Vision-enabled AR glasses and Insta360 adding Dolby Vision capture to an action camera.
Sonos Inc. (SONO - Free Report) is returning to growth as newer products; international expansion and a more reliable system broaden the value of its ecosystem. In the third fiscal quarter, revenue rose 9% year over year after 2% growth in the first half, and the first full quarter of Sonos Play and Era 100 SL contributed to results. Management is also rebuilding app navigation around customer research and beta feedback to strengthen everyday usability and advocacy. Amp Multi was shipped on Aug. 25, extending the system into larger professional installations, while a September product event will introduce work around conversational computing and predictive intelligence in the home.
SONY’s Price Performance, Valuation & EstimatesShares of SONY have lost 13.7% in the past year compared with the Zacks Audio Video Production industry’s decline of 13.8%.
Image Source: Zacks Investment Research
SONY seems attractive, as suggested by the Value Score of A. In terms of the forward 12-month Price/Sales ratio, SONY is trading at 1.74, slightly higher than the industry’s multiple of 1.72.
Image Source: Zacks Investment Research
For SONY, earnings estimates for the current year have been revised upward in the past 60 days.
Image Source: Zacks Investment Research
SONY currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Image Credits:Ruhani Kaur/Bloomberg / Getty Images Sony Music Publishing, Warner Chappell and numerous other music publishers have sued Anthropic and co-founders Dario Amodei and Benjamin Mann, alleging the AI lab conducted a “brazen campaign of illegally torrenting, scraping, and downloading copyrighted works.”
The lawsuit, which was filed late Friday in the U.S. District Court for the Northern District of California, was first reported by Music Business Worldwide. The publishers accuse Anthropic of “blatant theft” by using thousands of copyrighted works to train its AI model Claude.
“We disagree with the publishers’ claims and we intend to defend ourselves robustly in court,” an Anthropic spokesperson wrote in an emailed statement sent to TechCrunch.
This isn’t the first intellectual property lawsuit Anthropic has faced. Some of the same lawyers behind this lawsuit also represent Concord Music Group and Universal Music Group in a case filed in January and led the Bartz v. Anthropic case, in which a group of authors accused Anthropic of using copyrighted works to train products like Claude. Anthropic was ordered to pay $1.5 billion in the landmark Bartz case after a judge ruled that while it was legal for the AI lab to use copyrighted works, it was not legal to acquire that content through piracy.
While the cases make similar arguments, there are key differences. This latest lawsuit is particularly broad and builds off the other cases, including by accusing Anthropic of “flagrant piracy” through illegal torrenting to obtain millions of copies of books, including those that contain lyrics and sheet music.
Article was updated to include Anthropic’s comment.
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Sony Music and Warner Chappell filed a lawsuit against Anthropic on Friday. Illustration by Thomas Fuller/SOPA Images/LightRocket via Getty Images Sony Music and Warner Chappell want Anthropic to pay up.
The publishing companies filed a lawsuit against Anthropic in a Northern California district court on Friday. Anthropic cofounders Dario Amodei and Benjamin Mann were also named in the filing.
"Defendants Anthropic and its founders Dario Amodei and Benjamin Mann have conducted a brazen campaign of illegally torrenting, scraping, and downloading copyrighted works on a massive scale in order to develop, operate, and reap enormous profits from Anthropic's 'Claude' series of artificial intelligence ('AI') models," the companies said in the complaint.
Anthropic denied the accusations in a statement. "We disagree with the publishers' claims and we intend to defend ourselves robustly in court," the company said.
Sony Music Publishing and Warner Chappell Music said Anthropic collected "thousands upon thousands" of copyrighted songs, including 80s anthem "Eye of the Tiger," Marvin Gaye's "Ain't No Mountain High Enough," Mariah Carey's "All I Want for Christmas is You," and Taylor Swift's "Paper Rings."
In the lawsuit, the publishing companies said Anthropic has pirated their copyrighted works through a range of methods, including two digital archives, Library Genesis and Pirate Library Mirror. In June 2025, a judge ruled that Anthropic downloaded over 7 million pirated books to train Claude.
"Among the many millions of books that Defendants torrented from these illegal pirate websites were books containing the lyrics and sheet music to hundreds or more of Music Publishers' copyrighted musical compositions, identified in Exhibit A. Those works include 'Livin' On a Prayer,' 'September,' 'Great Balls of Fire,' 'Ramblin' Man,' and 'Hallelujah,'" the lawsuit says.
As a result, Claude models generate identical or near-identical copies of the copyrighted work in their responses to users, the companies alleged. In the lawsuit, the companies said training Claude on copyrighted content allows it to produce AI-generated lyrics that will ultimately compete with human-made songs.
Sony Music and Warner Chappell requested a jury trial. They're seeking statutory damages from Anthropic, including up to $150,000 for each composition it used to train Claude.
"Even the most revolutionary of technologies must develop within the bounds of the law, and Anthropic's Claude models are no different," the companies said in the complaint.
The AI industry has been targeted by a slew of copyright lawsuits since large language models like Claude and ChatGPT began to transform society.
Tech companies need troves of data to train their AI models, and go to great lengths to acquire it. Most recently, historians and archivists have accused AI companies of acquiring large numbers of antique books and feeding them into their LLMs, destroying them in the process.
Last September, Anthropic agreed to pay over $1.5 billion to authors to settle a class-action lawsuit related to pirated works. OpenAI, too, has faced several copyright lawsuits in recent years, including one from The New York Times and another from Encyclopedia Britannica.
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Lauren Edmonds You're currently following this author! Want to unfollow? Unsubscribe via the link in your email.
Lauren Edmonds is an award-winning reporter on the Business News team. When news isn't breaking, she covers personal finance, kitchen-table economics, and paths to financial freedom, including investing, real estate, side hustles, and small business. She also writes about guaranteed and universal basic income programs in the United States.Lauren has also covered lifestyle and entertainment, digital culture, and more. She has a master's degree from the Columbia University Graduate School of Journalism and resides in New York City.Do you have an interesting story to tell? You can reach Lauren at [email protected] or on Signal at ledmonds0.07.Popular StoriesNetflix wants to be Disney when it grows up Why Hollywood is paying this 17-year-old up to $20,000 to boost film trailers with TikTok editsHere's all the free money Trump's talked about giving Americans during his second term — and where it all standsA 17-year-old earned $72,000 after investing his e-commerce profits into stocks. Here's why he bet on the tech industry.Lawmakers float a nationwide basic income experiment that would cover the cost of a 2-bedroom apartmentNearly 30,000 Americans have received about $335 million in basic income. Here are 5 takeaways. Americans ditch suffocating healthcare costs and divisive politics to retire in Italy: 'It's the way they approach life'From 'road-schooling' to gas that costs $500, this family of 4 shares what it's like living in a solar-powered Greyhound bus
The music industry is once again accusing artificial intelligence giant Anthropic of intellectual property theft. Sony Music, Warner Chappell Music and several other labels filed a federal lawsuit Friday (Aug. 28) alleging that the Claude maker improperly used “thousands upon thousands” of their songs to train the AI model.
Sony (SONY - Free Report) closed the last trading session at $23.58, gaining 14% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $29.8 indicates a 26.4% upside potential.
The mean estimate comprises five short-term price targets with a standard deviation of $4.55. While the lowest estimate of $23.00 indicates a 2.5% decline from the current price level, the most optimistic analyst expects the stock to surge 44.2% to reach $34.00. It's very important to note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.
While the consensus price target is highly sought after by investors, the ability and unbiasedness of analysts in setting price targets have long been questionable. And investors making investment decisions solely based on this tool would arguably do themselves a disservice.
But, for SONY, an impressive average price target is not the only indicator of a potential upside. Strong agreement among analysts about the company's ability to report better earnings than they predicted earlier strengthens this view. While a positive trend in earnings estimate revisions doesn't gauge how much a stock could gain, it has proven to be powerful in predicting an upside.
Price, Consensus and EPS Surprise
Here's What You May Not Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.
While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?
They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.
However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.
That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.
Why SONY Could Witness a Solid UpsideThere has been increasing optimism among analysts lately about the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher. And that could be a legitimate reason to expect an upside in the stock. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
The Zacks Consensus Estimate for the current year has increased 10.1% over the past month, as three estimates have gone higher compared to no negative revision.
Moreover, SONY currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Therefore, while the consensus price target may not be a reliable indicator of how much SONY could gain, the direction of price movement it implies does appear to be a good guide.
When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?
Let's take a look at what these Wall Street heavyweights have to say about Sony (SONY - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.
Sony currently has an average brokerage recommendation (ABR) of 1.25, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 12 brokerage firms. An ABR of 1.25 approximates between Strong Buy and Buy.
Of the 12 recommendations that derive the current ABR, 10 are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 83.3% and 8.3% of all recommendations.
Brokerage Recommendation Trends for SONY
Check price target & stock forecast for Sony here>>>
The ABR suggests buying Sony, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.
Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.
ABR Should Not Be Confused With Zacks RankIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
Is SONY Worth Investing In?In terms of earnings estimate revisions for Sony, the Zacks Consensus Estimate for the current year has increased 10.1% over the past month to $1.41.
Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Sony. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, the Buy-equivalent ABR for Sony may serve as a useful guide for investors.
Toni Anne Barson/Getty Images for iHeartMedia A new filing in a lawsuit from a fired WPP executive alleges that Sony, one of the ad giant's major partners, investigated the company and concluded it had improperly withheld rebates from clients.
The lawsuit says that Sony presented the findings of its investigation to WPP in 2025 in a detailed analysis that said the ad agency giant operated what Sony called a "global crime scheme" across several markets, including China.
The allegations have high stakes for WPP, which handles tens of billions of dollars in ad spending for some of the world's largest companies. At its core, the lawsuit alleges WPP put its own interests ahead of its clients', engineering a way to use some of their advertising budgets to maximize its own profits without their consent.
The lawsuit says that Sony's investigation alleged this is how the practice worked:
WPP's media investment arm, GroupM, would negotiate a rebate deal with a media owner by leveraging its clients' combined advertising spending.WPP used a network of "intermediary brokers" to hold some of the rebates for itself rather than dispersing them to clients.WPP used rebate funds to subsidize the cost of ad inventory, then kept the resulting margin as profit that was shielded from audits.The lawsuit contains a purported slide from Sony's presentation to WPP titled "impact for WPP Advertisers — China 2024," which claims that approximately $110 million was passed back to clients that year, while $350 million remained in its rebate pool "for later utilization" by WPP.
A separate purported Sony slide described the practice as a "fraud scheme" run in China and other markets, and attributed its design to senior global WPP executives.
Sony drew its findings from the work of independent investigators who attended a criminal trial in China involving WPP executives and from interviews with former WPP and GroupM executives, the lawsuit says. GroupM was rebranded to WPP Media last year.
The lawsuit says Sony supported its findings with "contractual language regarding rebate policies, transaction-level financial reporting, internal emails regarding rebate amounts, and documentation of WPP tracking systems."
A Sony spokesperson said the company does not comment on pending litigation.
The new details are part of a lawsuit filed in November by Richard Foster, a former longtime GroupM executive. In the lawsuit, he accuses the company of retaliating against him and firing him after he raised concerns that the group's media investment division was allegedly running an improper global kickback operation.
WPP filed a motion to dismiss the lawsuit, arguing that Foster failed to state a legally sufficient claim while also objecting on jurisdictional grounds. The suit is ongoing.
WPP declined to comment on the alleged Sony review and said in a statement that Foster's amended complaint, filed days prior to an upcoming court hearing, is an attempt to avoid the case's dismissal.
"Both complaints are baseless and without merit, and WPP will be re-filing an updated motion to dismiss," WPP said. "We have confidence that this matter will be resolved through due legal process."
Foster alleged in the lawsuit that the operation was not confined to China and was deployed as part of a global model through which GroupM improperly retained roughly $1.5 billion to $2 billion in profits from rebate deals over five years, by his estimation.
The amended complaint says Sony's investigative findings corroborated "years of whistleblowing" from Foster, who is seeking at least $100 million in damages from WPP.
In the latest filing, Foster says he refused a "seven-figure termination package which included an obligation of silence regarding the company's undisclosed rebate practices."
The ad industry's heated 'principal media' debateMedia rebates are not inherently illegal, though they can raise transparency and accounting issues if they are not properly disclosed. A US ad industry trade group previously warned that rebates could amount to a breach of contract or fraud if not disclosed to the client or if advertisers were deceived about the practice.
Some markets, including China, are heavily reliant on media rebates and the use of brokers to facilitate them.
The prevalence of "proprietary media" agency models, commonly referred to as "principal media," has long been a divisive topic in the ad industry. They tend to take the form of agencies purchasing a large volume of media at a discount, reselling it to their clients, and making a margin on that resale.
Agencies argue that principal media is often more cost-effective for their clients than buying ad inventory themselves — and that CMOs are happy to participate so long as it performs well. Critics say the model — even when it's disclosed — can create conflicts of interest for agencies, which could be incentivized to steer marketers toward media the agency has already bought, rather than the inventory best suited to their clients' campaign objectives.
Advisory and consulting firm Madison and Wall recently estimated that principal media accounts for a "high single-digit or low double-digit" share of large-brand and agency activity in the US.
"Richard Foster asked a question any agency should be prepared to answer: Are your profits derived from loyal service to your clients, or not?" William A. Brewer III, partner at Brewer, Attorneys & Counselors and lead counsel to Foster, said in a statement.
WPP's media operations in China have already faced significant legal scrutiny. Earlier this year, Di Fei, the former GroupM China chief investment officer, was sentenced to life in prison for taking bribes totaling $176 million with his ex-colleagues, Bloomberg reported. Di Fei is appealing the ruling, Bloomberg reported in June.
WPP has said it is aware of the court's sentencing of its former employees in China and has cooperated fully with the relevant authorities.
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Lara O'Reilly You're currently following this author! Want to unfollow? Unsubscribe via the link in your email.
Lara O'Reilly is the anchor of the CMO Insider newsletter.She is a senior correspondent who has covered the digital advertising, marketing, and media industries since 2010. Her current beat includes big tech companies like Alphabet, and Meta, and adtech firms, agencies, publishers, the creator economy, and CMOs.Lara has previously worked as a reporter and executive producer at titles including The Wall Street Journal, Digiday, Yahoo Finance, and Marketing Week. She was previously Business Insider's senior global advertising editor from 2014 to 2017.Lara is a regular guest on TV and radio and has appeared on outlets such as the BBC, NPR, SiriusXM's Wharton Business Daily, and CTV Television Network. She also frequently speaks on stage at major events such as Web Summit, IFA, VivaTech, Advertising Week, and Cannes Lions.To get in touch with Lara O'Reilly, email [email protected] or contact her on Signal at @loreilly.71
Assenagon Asset Management S.A. acquired a new stake in Sony Corporation (NYSE:SONY – Free Report) during the second quarter, according to its most recent Form 13F filing with the SEC. The firm acquired 216,802 shares of the company’s stock, valued at approximately $4,349,000.
Other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. V Square Quantitative Management LLC bought a new position in shares of Sony in the fourth quarter valued at approximately $27,000. Elyxium Wealth LLC bought a new stake in shares of Sony during the 4th quarter worth $27,000. Annis Gardner Whiting Capital Advisors LLC boosted its holdings in shares of Sony by 404.1% during the 4th quarter. Annis Gardner Whiting Capital Advisors LLC now owns 1,109 shares of the company’s stock worth $28,000 after buying an additional 889 shares during the period. Twin Tree Management LP grew its stake in Sony by 4,218.5% in the 4th quarter. Twin Tree Management LP now owns 1,112 shares of the company’s stock valued at $28,000 after buying an additional 1,139 shares during the last quarter. Finally, Osterweis Capital Management Inc. bought a new position in Sony in the 4th quarter worth $28,000. 14.05% of the stock is currently owned by institutional investors and hedge funds.
Insider Buying and Selling In other Sony news, insider Tsuyoshi Kodera sold 17,100 shares of the firm’s stock in a transaction that occurred on Tuesday, August 4th. The stock was sold at an average price of $22.72, for a total value of $388,512.00. Following the completion of the sale, the insider owned 47,508 shares in the company, valued at approximately $1,079,381.76. This trade represents a 26.47% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Hiroki Totoki sold 225,000 shares of Sony stock in a transaction that occurred on Friday, July 3rd. The stock was sold at an average price of $21.02, for a total value of $4,729,500.00. Following the sale, the chief executive officer directly owned 173,250 shares in the company, valued at $3,641,715. The trade was a 56.50% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 1,350,065 shares of company stock worth $29,878,266. 7.00% of the stock is currently owned by corporate insiders.
Analyst Upgrades and Downgrades SONY has been the subject of a number of research analyst reports. Benchmark reissued a “buy” rating on shares of Sony in a research report on Monday, August 3rd. Wall Street Zen downgraded Sony from a “buy” rating to a “hold” rating in a research report on Sunday. Weiss Ratings reiterated a “sell (d+)” rating on shares of Sony in a research note on Wednesday, May 20th. Finally, Zacks Research raised Sony from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, August 4th. One analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $22.00.
Get Our Latest Report on SONY
Sony Stock Performance NYSE:SONY opened at $23.52 on Thursday. The firm’s 50-day moving average is $21.33 and its 200-day moving average is $21.49. The company has a market cap of $138.96 billion, a price-to-earnings ratio of 21.00, a PEG ratio of 1.73 and a beta of 0.92. The company has a debt-to-equity ratio of 0.11, a quick ratio of 0.97 and a current ratio of 1.25. Sony Corporation has a 52-week low of $19.32 and a 52-week high of $30.34.
Sony (NYSE:SONY – Get Free Report) last released its earnings results on Saturday, August 1st. The company reported $0.36 earnings per share for the quarter, beating the consensus estimate of $0.28 by $0.08. Sony had a negative net margin of 2.00% and a positive return on equity of 13.06%. The business had revenue of $17.45 billion during the quarter, compared to analysts’ expectations of $17.17 billion. During the same quarter last year, the company earned $42.84 earnings per share. The firm’s revenue was up 8.2% on a year-over-year basis. Equities research analysts anticipate that Sony Corporation will post 1.39 earnings per share for the current year.
More Sony News Here are the key news stories impacting Sony this week:
Positive Sentiment: Major image-sensor joint venture with TSMC: Sony and Taiwan Semiconductor Manufacturing Company agreed to invest approximately $4.7 billion in a Kumamoto, Japan facility to produce next-generation CMOS image sensors, with volume production targeted for 2029. Sony will remain the controlling shareholder, securing advanced manufacturing capacity for its market-leading mobile-camera sensor business and reducing supply-chain concentration risk. Reuters report on TSMC investment in Sony image-sensor joint venture Positive Sentiment: Strong operating momentum: Sony’s first-quarter FY2027 operating income reportedly rose 40% year over year to ¥476.5 billion, led by gaming and imaging and sensing. Management also raised full-year operating-income guidance to ¥1.72 trillion. Its recent quarterly EPS and revenue both exceeded analyst expectations, with revenue up 8.2% year over year. Positive Sentiment: Media outlook remains constructive: Sony Pictures CEO Ravi Ahuja said he is encouraged by box-office performance this year and described YouTube as a partner rather than a competitor, suggesting confidence in theatrical releases and broader content-distribution opportunities. CNBC interview with Sony Pictures CEO Neutral Sentiment: New film and Crunchyroll projects, including a planned global release of Makoto Shinkai’s next film, could strengthen Sony’s entertainment pipeline, but the financial impact and timing are not yet clear. Crunchyroll acquisition report Negative Sentiment: Large investment and long lead time: The image-sensor venture requires substantial capital before production begins in 2029. Although Japanese subsidies may reduce the burden, construction, demand, and technology-execution risks could limit near-term earnings benefits. Negative Sentiment: Commentary questioning Sony’s all-digital PlayStation strategy highlights potential concerns about hardware adoption and the need for stronger digital-platform momentum. GameSpot analysis of Sony’s digital PlayStation strategy Sony Profile (Free Report)
Sony Group Corporation (NYSE: SONY) is a Japanese multinational conglomerate headquartered in Minato, Tokyo. Founded in 1946 by Masaru Ibuka and Akio Morita, Sony has grown from an electronics maker into a diversified global company with operations spanning consumer electronics, entertainment, gaming, semiconductors and financial services. The company’s shares trade in Japan and its American Depositary Receipts trade on the New York Stock Exchange under the ticker SONY.
Sony’s primary businesses include Electronics Products & Solutions, which covers televisions, audio equipment, digital cameras and professional broadcast systems; Game & Network Services, anchored by the PlayStation platform, consoles, software and online services; Music and Pictures, through Sony Music Entertainment and Sony Pictures Entertainment, producing, distributing and licensing recorded music, film and television content; Imaging & Sensing Solutions, which develops CMOS image sensors and other semiconductor components; and Financial Services, offering life insurance, banking and other financial products in Japan.
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Sony Pictures CEO Ravi Ahuja joins CNBC's Julia Boorstin to talk the recent success of Spider-Man Brand New Day, growth at the box office, the changing media landscape, and more.
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Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
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How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
#1 (Strong Buy) stocks have produced an unmatched +23.94% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
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Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
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Stock to Watch: Sony (SONY - Free Report) Headquartered in Tokyo, Japan, Sony Group Corporation designs, manufactures and sells several consumer and industrial electronic equipment. The company’s product roster comprises audio and video equipment, televisions, network services, game hardware and software, mobile phones and image sensors. Additionally, Sony is active in the production, acquisition and distribution of recorded music and the management and licensing of the words and music for songs.
SONY is a #1 (Strong Buy) on the Zacks Rank, with a VGM Score of A.
Momentum investors should take note of this Consumer Discretionary stock. SONY has a Momentum Style Score of B, and shares are up 12.5% over the past four weeks.
For fiscal 2027, three analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.12 to $1.40 per share. SONY boasts an average earnings surprise of +13.1%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, SONY should be on investors' short list.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Sony Pictures Entertainment Motion Picture Group Chairman and CEO Tom Rothman says this latest Spider-Man movie was deeper and more emotional than others in the franchise. He says "Spider-Man: Brand New Day" could be one of the studio's most profitable movies ever.
Atul Goyal, Managing Director of Jefferies Asia, defends his bullish price target of ¥21,260 for Nintendo, but believes the launch of 'Grand Theft Auto VI' will make 2026 a breakout year for rival Sony. This comes as Nintendo and Sony hiked prices for their Switch 2 and PlayStation 5 consoles, amid higher memory costs.
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What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
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How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
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Stock to Watch: Sony (SONY - Free Report) Headquartered in Tokyo, Japan, Sony Group Corporation designs, manufactures and sells several consumer and industrial electronic equipment. The company’s product roster comprises audio and video equipment, televisions, network services, game hardware and software, mobile phones and image sensors. Additionally, Sony is active in the production, acquisition and distribution of recorded music and the management and licensing of the words and music for songs.
SONY is a #1 (Strong Buy) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 16.02; value investors should take notice.
For fiscal 2027, three analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.12 to $1.40 per share. SONY boasts an average earnings surprise of +13.1%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, SONY should be on investors' short list.
Sony (SONY - Free Report) closed the last trading session at $22.35, gaining 4.4% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $29 indicates a 29.8% upside potential.
The mean estimate comprises five short-term price targets with a standard deviation of $5.05. While the lowest estimate of $23.00 indicates a 2.9% increase from the current price level, the most optimistic analyst expects the stock to surge 52.1% to reach $34.00. It's very important to note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.
While the consensus price target is highly sought after by investors, the ability and unbiasedness of analysts in setting price targets have long been questionable. And investors making investment decisions solely based on this tool would arguably do themselves a disservice.
But, for SONY, an impressive average price target is not the only indicator of a potential upside. Strong agreement among analysts about the company's ability to report better earnings than they predicted earlier strengthens this view. While a positive trend in earnings estimate revisions doesn't gauge how much a stock could gain, it has proven to be powerful in predicting an upside.
Price, Consensus and EPS Surprise
Here's What You Should Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.
While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?
They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.
However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.
That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.
Why SONY Could Witness a Solid UpsideAnalysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason to expect an upside in the stock. That's because empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Over the last 30 days, the Zacks Consensus Estimate for the current year has increased 8.8%, as two estimates have moved higher compared to no negative revision.
Moreover, SONY currently has a Zacks Rank #1 (Strong Buy), which means it is in the top 5% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Therefore, while the consensus price target may not be a reliable indicator of how much SONY could gain, the direction of price movement it implies does appear to be a good guide.
Key Takeaways Sony raised fiscal 2026 operating income guidance 8% to 1.72T yen after a strong first quarter.PlayStation network revenues hit 208.6B yen as monthly active users reached a June record of 125 million.Premium valuation, weaker cash generation and higher debt leave less room for execution missteps. Sony Group Corporation (SONY - Free Report) combines faster profit growth with a broader mix of digital entertainment and image-sensor earnings. The company’s raised outlook strengthens the investment case.
Valuation, cash conversion and product-cycle exposure limit the margin for error. The stock looks more suitable for investors willing to accept execution risk than for those seeking a low-priced entry.
Sony’s Earnings Strengthen the Buy CaseSony raised its fiscal 2026 sales forecast to ¥12.5 trillion from ¥12.3 trillion. Operating income guidance increased 8% to ¥1.72 trillion, while the net income forecast rose 4% to ¥1.21 trillion.
Image Source: Zacks Investment Research
The revisions followed a first quarter in which operating income advanced 40% to ¥476.5 billion and the operating margin expanded to 16.8% from 13%. Profit growth materially outpaced the 8% increase in sales.
SONY’s Recurring Revenue Mix Builds ResiliencePlayStation network services generated ¥208.6 billion in quarterly revenues, while monthly active users reached a June record of 125 million. Music streaming also grew, with Recorded Music and Music Publishing streaming revenues rising 10% and 8%, respectively, in U.S. dollar terms.
Game & Network Services, Music and Pictures produced combined fiscal 2025 segment sales equal to nearly 67% of consolidated sales. Spotify Technology S.A. (SPOT - Free Report) provides a focused streaming comparison, while Sony also owns recordings, publishing rights and catalogs that can be monetized across formats.
Sony’s Valuation Leaves Less Room for ErrorSONY trades at 1.7X forward 12-month sales, above its three-year median of 1.5X and the sub-industry’s 1.6X. Its forward earnings multiple of 17.5X also exceeds the industry comparison of 13.8X.
Those premiums are easier to defend when margins and recurring revenues keep improving. Slower earnings growth, weaker engagement, or an unfavorable business mix could produce multiple compressions even if Sony remains profitable.
SONY Faces Execution and Cash Flow PressureCash provided by continuing operations declined to ¥197.4 billion from ¥253.9 billion as inventories, content investment and taxes weighed on cash generation. Long-term debt increased to ¥993.7 billion, adding another reason to monitor the conversion of accounting profits into cash.
Gaming incurred next-generation platform investment and restructuring costs, while past impairments show that strategic spending does not always produce timely returns. Higher memory costs and an adjusted first-party game roadmap add to the execution burden.
Sony’s Catalysts Must Outrun Its RisksMajor game releases, improved PlayStation engagement, anime expansion, music growth and a richer image-sensor mix could extend the earnings improvement. Crunchyroll subscriber growth and catalog licensing provide additional ways to monetize intellectual property.
Nintendo Co., Ltd. (NTDOY - Free Report) is a useful console-cycle comparison because its dedicated gaming business also depends on hardware and software demand. Sony must also manage competitive pressure, uneven hardware demand, currency sensitivity, memory costs and the unquantified impact of the Kumamoto earthquake.
SONY’s Scores Favor Buyers With Risk ToleranceSony’s fundamentals support a buy-leaning view for investors comfortable with cyclical and execution risk, but the valuation argues for discipline. The raised outlook and broader earnings base are constructive, while cash-flow pressure and external variables make the timing less straightforward.
The stock boasts a Zacks Rank #1 (Strong Buy), a VGM Score of A and a Momentum Score of A. Its Value Score of B is favorable, but the Growth Score of C and a 2.8% decline in the fiscal-year earnings estimate over three months temper the signal. The combination favors risk-tolerant buyers without removing the need to track delivery against guidance. You can see the complete list of today’s Zacks #1 Rank stocks here.
Key Takeaways Sony gained 10.9% in a week as faster profit growth and higher full-year forecasts supported momentum.Gaming operating income rose 37% despite nearly flat sales and weaker hardware demand.Sensor operating income more than doubled on pricing, mix and currency, while valuation carried a premium. Sony Group Corporation (SONY - Free Report) has gained 10.9% in a week, putting the durability of its earnings momentum under closer scrutiny. The latest quarter supplied several reasons for optimism, including faster profit growth and higher full-year forecasts.
The next move may depend on whether Sony can convert favorable currency effects, tariff refunds and better business mix into sustainable operating gains. Valuation and execution risks leave less room for disappointment after the sharp advance.
SONY’s Gaming Profits Outpace Hardware DemandGame & Network Services sales were nearly flat at ¥937.1 billion as lower hardware unit sales and weaker non-first-party software offset currency benefits. Operating income still climbed 37% to ¥202 billion, helped by U.S. tariff refunds and foreign exchange.
Network services revenue reached ¥208.6 billion, while PlayStation monthly active users increased 2% to a June record of 125 million. Nintendo Co. Ltd. (NTDOY - Free Report) offers a relevant console-industry comparison because its business also spans dedicated gaming hardware and software.
Sony’s Music and Sensors Add Earnings BreadthMusic sales rose 21% to ¥562 billion, supported by foreign exchange, live events, merchandising and streaming. Recorded Music streaming revenues increased 10% in U.S. dollar terms, while Music Publishing streaming revenues grew 8%.
Imaging & Sensing Solutions sales increased 26% to ¥512.7 billion. Operating income more than doubled to ¥122.2 billion as higher mobile-sensor pricing, improved customer and product mix and currency effects lifted profitability. Spotify Technology S.A. (SPOT - Free Report) provides a more focused streaming comparison to Sony’s diversified music operations.
SONY Still Faces Costs, FX and Cycle RisksGaming absorbed higher spending for the next-generation platform and restructuring. Sony also adjusted its first-party title roadmap, while rising memory costs pressured the Entertainment, Technology & Services business.
Currency boosted reported results across several segments, and consolidated sales fell about 1% on a constant-currency basis. Smartphone and hardware demand remain uneven, while the Kumamoto earthquake created a production risk that was not included in full-year guidance.
Sony’s Valuation Could Cap the Next LegSony trades at 1.69 times forward 12-month sales, above its three-year median of 1.49 times and the sub-industry’s 1.64 times. That premium suggests the market already recognizes part of the earnings improvement.
Further gains may require Sony to deliver on its higher forecasts and preserve margin expansion without depending mainly on tariff refunds and currency. A richer multiple also increases the stock’s sensitivity to weaker demand, unfavorable exchange-rate movements or slower profit growth.
SONY’s Strong Signals Support the Rally CaseThe rally has operating support, but its extension rests on execution. Sony’s broader profit base, improved outlook and expanding margins strengthen the case, while valuation and cyclical risks argue against assuming another quick advance.
The stock sports a Zacks Rank #1 (Strong Buy), a VGM Score of A and a Momentum Score of A. Its Value Score of B is also favorable, while the Growth Score of C and the absence of positive near-term estimate revisions temper the signal. The combination supports a constructive view without removing the need to monitor delivery against guidance. You can see the complete list of today’s Zacks #1 Rank stocks here.
Sony splits the big-screen ownership of Spider-Man with Disney thanks to a strategic gamble it made in 1998.
Brand New Day Rewrites Box Office HistoryThe new Spider-Man film, with actor Tom Holland returning to the title role, set records on both Thursday ($72 million gross) and Friday ($169.8 million), according to Variety. It’s already the fifth highest-grossing film domestically for 2026 after one weekend and the only Sony title in the top 10.
Among the 11 Spider-Man films released since 2002, the latest installment already ranks sixth domestically.
For Sony, the movie is its biggest title of the year and could help the less-known entertainment segment of the business portfolio.
In 2025, Sony’s highest-grossing film was "Demon Slayer," ranking $18th domestically. This year, Sony has Spider-Man already climbing, "GOAT" at 18th domestically, and "Jumanji: Open World" releasing in December. This could put a bigger spotlight on the film and TV segment.
Sony will likely keep the Spider-Man film universe alive, as part of a long-running deal to keep the rights to the iconic web-slinging character.
How Sony Nabbed Marvel’s Crown JewelIn 1998, Marvel faced post-bankruptcy financial troubles and shopped it characters around for film licensing deals. Fox, which is now part of Disney, acquired the film rights to X-Men and the Fantastic Four.
Sony grabbed the film rights to Spider-Man for $10 million, as reported by blogger Trung Phan. The rights included 5% of film gross going back to Marvel along with 50% of merchandise revenue. That deal has since been changed since Disney acquired Marvel.
Disney now holds 100% merchandising rights and is believed to get a higher box office percentage for sharing characters across companies.
Since the 1998 agreement, Sony has released 11 Spider-Man films, which have grossed more than $4 billion domestically and more than $10 billion worldwide.
While Sony’s bet has paid off significantly, the company may have missed out on what could have been an even better deal. Marvel tried selling the film rights to all heroes and villains (excluding the X-Men and Fantastic Four) to Sony for $25 million.
At least one Sony executive was against spending the extra money on anything outside Spider-Man.
"Nobody gives a shit about any of these other Marvel characters. Go back and do a deal for only Spider-Man," Sony executive Yair Landau said at the time.
Spider-Man and the 3-Year, 9-Month ClockSony ended up grabbing the film rights to Spider-Man for roughly $10 million, which paid off in dividends for the company’s entertainment division.
Disney’s subsquent acquisition of Marvel put more pressure on trying to buyback the rights to the famous comic character. Instead, Sony used the film rights as leverage and negotiated a new deal.
Sony’s deal includes the film rights to Spider-Man as long as a new film in the franchise has production commence with three years and nine months and released within five years and nine months of the last film in the franchise.
This is why there are so many Spidey films and why Sony is likely to keep making films in the franchise to hold onto one of the best film bets ever made.
Photo Courtesy: Miguel Lagoa On Shutterstock.com
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Sony (NYSE:SONY – Get Free Report) and SharkNinja (NYSE:SN – Get Free Report) are both large-cap consumer discretionary companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, valuation, profitability, earnings, dividends, analyst recommendations and institutional ownership.
Valuation & Earnings This table compares Sony and SharkNinja”s revenue, earnings per share and valuation.
Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio Sony $82.90 billion 1.66 -$2.16 billion ($0.20) -116.65 SharkNinja $6.40 billion 3.59 $701.37 million $4.96 32.70 SharkNinja has lower revenue, but higher earnings than Sony. Sony is trading at a lower price-to-earnings ratio than SharkNinja, indicating that it is currently the more affordable of the two stocks.
Profitability This table compares Sony and SharkNinja’s net margins, return on equity and return on assets.
Net Margins Return on Equity Return on Assets Sony -2.00% 13.06% 4.79% SharkNinja 10.70% 29.07% 14.70% Insider & Institutional Ownership 14.1% of Sony shares are owned by institutional investors. Comparatively, 34.8% of SharkNinja shares are owned by institutional investors. 7.0% of Sony shares are owned by company insiders. Comparatively, 40.8% of SharkNinja shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Risk and Volatility Sony has a beta of 0.92, meaning that its share price is 8% less volatile than the S&P 500. Comparatively, SharkNinja has a beta of 1.21, meaning that its share price is 21% more volatile than the S&P 500.
Analyst Recommendations This is a breakdown of recent ratings and target prices for Sony and SharkNinja, as reported by MarketBeat.com.
Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Sony 1 2 4 0 2.43 SharkNinja 0 2 9 0 2.82 Sony presently has a consensus target price of $22.00, indicating a potential downside of 5.70%. SharkNinja has a consensus target price of $167.90, indicating a potential upside of 3.53%. Given SharkNinja’s stronger consensus rating and higher possible upside, analysts plainly believe SharkNinja is more favorable than Sony.
Summary SharkNinja beats Sony on 13 of the 14 factors compared between the two stocks.
About Sony (Get Free Report)
Sony Group Corporation designs, develops, produces, and sells electronic equipment, instruments, and devices for the consumer, professional, and industrial markets in Japan, the United States, Europe, China, the Asia-Pacific, and internationally. The company distributes software titles and add-on content through digital networks; network services related to game, video, and music content; and home gaming consoles, packaged and game software, and peripheral devices. It also develops, produces, markets, and distributes recorded music; publishes music; and produces and distributes animation titles, game applications, and various services for music and visual products. In addition, the company produces, acquires, and distributes live-action and animated motion pictures for theatrical release, as well as scripted and animated series, unscripted reality or light entertainment, daytime serials, game shows, television movies, and miniseries and other television programs; operation of television networks and direct-to-consumer streaming services; operates a visual effects and animation unit; and manages a studio facility. Further, it researches, develops, designs, produces, markets, distributes, sells, and services televisions, and video and sound products; interchangeable lens, as well as compact digital, and consumer and professional video cameras; projectors and medical equipment; mobile phones, accessories, and applications; and metal oxide semiconductor image sensors, charge-coupled devices, integration systems, and other semiconductors. Additionally, it offers Internet broadband network services; recording media, and storage media products; and life and non-life insurance, banking, and other services, as well as creates and distributes content for PCs and mobile phones. The company was formerly known as Sony Corporation and changed its name to Sony Group Corporation in April 2021. Sony Group Corporation was incorporated in 1946 and is headquartered in Tokyo, Japan.
About SharkNinja (Get Free Report)
SharkNinja, Inc., a product design and technology company, engages in the provision of various solutions for consumers worldwide. It offers cleaning appliances, including corded and cordless vacuums, including handheld and robotic vacuums, as well as other floorcare products comprising steam mops, wet/dry cleaning floor products, and carpet extraction; cooking and beverage appliances, such as air fryers, multi-cookers, outdoor and countertop grills and ovens, coffee systems, carbonation, cookware, cutlery, kettles, toasters and bakeware; food preparation appliances comprising blenders, food processors, ice cream makers, and juicers; and beauty appliances, such as hair dryers and stylers, as well as home environment products comprising air purifiers and humidifiers. The company sells its products through traditional brick-and-mortar retail channels and e-commerce channels, distributors, and direct-to-consumer channels under the Shark and Ninja brands. SharkNinja, Inc. was incorporated in 2017 and is headquartered in Needham, Massachusetts.
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NEW YORK--(BUSINESS WIRE)--IMAX® Corporation (NYSE: IMAX) today announced that Sony Pictures' Spider-Man: Brand New Day will expand across the IMAX network into North America beginning Thursday, August 6. The move follows a strong IMAX opening for the film in China, Japan and South Korea, where it generated $23 million at the IMAX box office. In China, the film earned $19 million in IMAX, delivering the biggest IMAX opening weekend in Spider-Man franchise history, while accounting for a franchi.
Sony Is Going All-Digital—But Investors Should Watch This InsteadSony NYSE: SONY reported record first-quarter sales and operating income for fiscal 2026, raised its full-year sales, operating income and net-income forecasts, and said it expects most of an estimated ¥80 billion in U.S. tariff refunds to benefit results during the current fiscal year.
For the quarter ended June 30, consolidated sales rose 8% year over year to ¥2.84 trillion, while operating income increased 40% to ¥476.5 billion. Net income climbed 32% to ¥342.2 billion. CFO Lin Tao said sales and operating income were both first-quarter records.
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Microsoft’s Xbox Problem Is Bigger Than a Console WarSony lifted its fiscal-year sales forecast by 2% to ¥12.5 trillion and raised its operating-income outlook by 8% to ¥1.72 trillion. Its net-income forecast increased 4% to ¥1.21 trillion, while the operating cash flow outlook remained unchanged at ¥1.5 trillion.
Tao said Sony expects approximately ¥80 billion in refunds of U.S. tariffs paid by the group during the fiscal year. Most of that amount was incorporated into the higher consolidated operating-income forecast. During the investor question-and-answer session, management said roughly 70% of the expected refund was recognized in the first quarter, with the largest share benefiting the Game & Network Services business and the remainder going to Imaging & Sensing Solutions.
Earthquake Impact Not Included in Forecast How the Memory Shortage Is Crushing the Gaming IndustryThe company said its semiconductor facilities in Kumamoto Prefecture and neighboring regions were affected by the July 28 Kumamoto earthquake. Sony reported no casualties other than several minor injuries.
The Kumamoto Technology Center in Kikuyo Town, which was near the epicenter and experienced seismic intensity of 5+, suspended production immediately after the quake. Tao said the site was scheduled to gradually resume production beginning Aug. 4 and return to pre-earthquake output levels by mid-August. Production had already resumed at sites in Nagasaki, Oita and Kagoshima, where Sony said there was no significant damage to buildings or equipment.
Sony did not include earthquake effects in its full-year outlook because the financial impact could not yet be reasonably estimated. Tao said the company did not expect the event to have a major effect on full-year semiconductor results, citing a lower level of damage than the Kumamoto earthquake a decade earlier, strengthened seismic resistance at facilities and lessons from prior business-continuity planning.
Gaming Profit Rises as Sony Plans Disc Production End Game & Network Services first-quarter sales were essentially flat at ¥937.1 billion, while operating income rose 37% to ¥202 billion. The profit increase was primarily driven by U.S. tariff refunds, partly offset by higher costs, including investment in the next-generation platform and restructuring expenses.
Sony increased its full-year G&NS sales outlook by 3% to ¥4.54 trillion, primarily due to foreign exchange rates, and raised its operating-income forecast by 10% to ¥660 billion. The company also cited tariff refunds and additional cost improvements.
Monthly active users across the PlayStation platform rose 2% year over year to a June record of 125 million accounts. Total play time declined 4%, which management attributed to a comparison period that benefited from season updates to major titles and new hit releases. Tao said engagement remained solid and could improve as major first- and third-party titles are scheduled for release toward the end of the calendar year.
Sony said it has secured the memory required to meet projected PS5 sales volume in the current fiscal year and continues to expect hardware profitability comparable with the prior year.
During the media session, Tao confirmed Sony will stop manufacturing game discs from January 2028. She said the decision reflected broader digitalization of content and that the company does not currently anticipate a negative business impact because a large share of content sales is already digital. Sony said it will continue discussions with retailers and take regional differences into account, noting that North American retailers already sell packages containing digital codes rather than discs.
Music and Image Sensors Deliver Record Quarterly Profits The Music segment posted a 21% increase in sales to ¥562 billion and a 14% increase in operating income to a first-quarter record of ¥105.9 billion. Sony cited foreign exchange, higher live-event revenue and increased recorded-music streaming revenue.
On a U.S.-dollar basis, recorded-music streaming revenue rose 10% and music-publishing streaming revenue increased 8%. Tao said streams of Michael Jackson songs increased to about four times their pre-film-release level following the global success of the movie Michael.
Sony raised its Music sales forecast 2% to ¥2.19 trillion and its operating-income forecast 5% to ¥420 billion, citing foreign exchange and consolidation of Recognition Music Group.
Imaging & Sensing Solutions sales rose 26% to ¥512.7 billion, while operating income increased approximately 2.3 times to a first-quarter record of ¥122.2 billion. Higher average selling prices for mobile sensors and foreign exchange contributed to the result.
The company raised the segment’s sales forecast by 2% to ¥2.11 trillion and operating-income forecast by 5% to ¥420 billion. However, Sony said it remains cautious on the second half because memory-market conditions could affect high-end smartphone shipments. It expects full-year mobile-sensor revenue to decline slightly from the prior fiscal year.
Sony also said discussions with TSMC toward definitive agreements for a next-generation image-sensor development and manufacturing partnership were progressing smoothly. The company included roughly ¥10 billion of additional fiscal-year costs for preparations related to the prospective joint venture.
Other Business Updates Pictures sales declined 4% to ¥315.1 billion, reflecting fewer television-series deliveries, while operating income rose 33% to ¥24.8 billion as theatrical marketing costs decreased. Sony raised its segment operating-income forecast by 3% to ¥150 billion. Crunchyroll subscribers continued to grow beyond the more than 21 million reported at the end of March, according to Tao.
Entertainment, Technology & Services sales rose 2% to ¥543.9 billion and operating income was essentially flat at ¥42.6 billion. Sony maintained its full-year forecast for the segment, while noting continued memory-price increases as a challenge.
Sony said it had repurchased approximately ¥120 billion of shares through the end of June under the repurchase facility established in May.
About Sony (NYSE:SONY)Sony Group Corporation NYSE: SONY is a Japanese multinational conglomerate headquartered in Minato, Tokyo. Founded in 1946 by Masaru Ibuka and Akio Morita, Sony has grown from an electronics maker into a diversified global company with operations spanning consumer electronics, entertainment, gaming, semiconductors and financial services. The company’s shares trade in Japan and its American Depositary Receipts trade on the New York Stock Exchange under the ticker SONY.
Sony’s primary businesses include Electronics Products & Solutions, which covers televisions, audio equipment, digital cameras and professional broadcast systems; Game & Network Services, anchored by the PlayStation platform, consoles, software and online services; Music and Pictures, through Sony Music Entertainment and Sony Pictures Entertainment, producing, distributing and licensing recorded music, film and television content; Imaging & Sensing Solutions, which develops CMOS image sensors and other semiconductor components; and Financial Services, offering life insurance, banking and other financial products in Japan.
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Should You Invest $1,000 in Sony Right Now?Before you consider Sony, you'll want to hear this.
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Spider-Man is already webbing up a massive box office haul.
Sony and Marvel's "Spider-Man: Brand New Day" secured $72 million in preview ticket sales, the highest collection for any domestic film in Hollywood history. The previous record holder was 2019's "Avengers: Endgame," which tallied $60 million ahead of its opening weekend.
"The demand for 'Spider-Man: Brand New Day' is nothing short of astonishing," said Paul Dergarabedian, head of marketplace trends at Rentrak. "For a film to earn more than $70 million in pre-shows is unprecedented and it reflects massive enthusiasm among moviegoers to head to the multiplex for the latest Marvel epic."
The newest solo Spider-Man film benefited from Wednesday early access screenings as well as Thursday night previews. It is expected to haul in around $270 million domestically over its debut weekend, although some box office analysts foresee an even bigger bounty.
The previous Spidey flick, "Spider-Man: No Way Home" currently stands as the second-highest domestic opening of all time with $260 million across its debut weekend in 2021. "Endgame" tallied $357 million during its first three days in theaters in 2019. "Brand New Day" is expected to surpass "No Way Home," but remain behind "Endgame."
"While pre-shows are a very strong indicator of potential opening-weekend success, several factors can come into play, including a heavily front-loaded preview and opening day driven by fans motivated by the shared urgency of opening-weekend FOMO, [fear of missing out]," Dergarabedian said.
Afterall, "Endgame" managed its historic opening weekend with the help of 24-hour showings and extra screenings. There are late night and early morning screenings of "Brand New Day" to meet demand for tickets, but it's unclear if the programming is on the same scale as "Endgame."
And, "Brand New Day" does not have the added benefit of an Imax release, as those screens have been reserved for Christopher Nolan's and Universal's "The Odyssey."
The Spider-Man installment will still benefit from premium large format screenings, however. The film has been programmed for ScreenX, 4DX, Dolby Cinema and HDR by Barco as well as premium offerings that are proprietary to the likes of AMC, Regal, Cinemark and regional players.
ScreenX represented $1.8 million in Thursday ticket sales domestically and is expected to reach $4 million by the end of the weekend. Meanwhile, 4DX has tallied around $1.3 million domestically and is set to hit $4.5 million over the three-day debut.
"Brand New Day" arrives at the tail end of July, and the bulk of its box office will be reflected during the month of August. That's good news for the domestic box office. Typically, August is the softest month on the summer movie calendar. With "Brand New Day," the theatrical industry gets a momentum boost heading into the fall movie season.
The domestic box office has collected $5.6 billion in ticket sales this year through Sunday. That's 16% behind 2019 levels, the last benchmark before the Covid pandemic shuttered movie theaters and paused production.
However, the 2026 summer corridor is down just 9% from the 2019 comparison, standing at $3.05 billion versus $3.36 billion seven years ago.
That gap could narrow even further with Imax extending coveted screenings of "The Odyssey" into September and as "Brand New Day" plays through the rest of summer.
Still to come is the November release of Lionsgate's "The Hunger Games: Sunrise on the Reaping" and the hotly expected double feature of Warner Bros.' "Dune: Part Three" and Disney's "Avengers: Doomsday" due in theaters Dec. 18.
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
Let's take a look at what these Wall Street heavyweights have to say about Sony (SONY - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.
Sony currently has an average brokerage recommendation (ABR) of 1.42, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 12 brokerage firms. An ABR of 1.42 approximates between Strong Buy and Buy.
Of the 12 recommendations that derive the current ABR, nine are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 75% and 8.3% of all recommendations.
Brokerage Recommendation Trends for SONY
Check price target & stock forecast for Sony here>>>
While the ABR calls for buying Sony, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.
Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.
Zacks Rank Should Not Be Confused With ABRAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.
Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.
Is SONY Worth Investing In?In terms of earnings estimate revisions for Sony, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $1.28.
Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Sony. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for Sony.
Key Takeaways Sony's Q1 sales rose 8.2% as sensors and music led growth, while gaming profitability strengthened.Gaming operating income jumped 37% on tariff refunds and favorable forex, despite higher investment.Sony raised fiscal 2026 sales guidance to 12,500B yen and operating income to 1,720B yen. Sony Group Corporation (SONY - Free Report) reported earnings of ¥57.82 per share for the first quarter of fiscal 2026, up 35% year over year from ¥42.84. Adjusted net income increased 32.1% to ¥342.2 billion.
Quarterly net sales advanced 8.2% to ¥2,837.8 billion. Growth was led by Imaging & Sensing Solutions and Music, while gaming profitability strengthened.
Sony's Gaming Profit JumpsGame & Network Services sales were nearly flat at ¥937.1 billion. Segment operating income climbed 37% to ¥202 billion, supported by U.S. tariff refunds and favorable forex movements. Higher investment in the next-generation platform and restructuring costs were partial offsets.
PlayStation monthly active users reached a June record of 125 million, up 2% year over year, despite a 4% decline in total playtime.
Network Services revenues increased to ¥208.6 billion from ¥172.6 billion, while Hardware and Others fell to ¥222.0 billion from ¥248.0 billion. PlayStation 5 shipments declined to 1.6 million units from 2.5 million, but full-game software sales edged up to 66.1 million units from 65.9 million. The digital download ratio slipped to 82% from 83%.
SONY's Sensors and Music Drive GrowthImaging & Sensing Solutions sales jumped 26% to ¥512.7 billion, while operating income surged 125% to ¥122.2 billion. Mobile image sensor results benefited from a better customer and product mix, modest unit growth and favorable foreign exchange rates.
Music sales rose 21% to ¥562 billion, and operating income increased 14% to ¥105.9 billion. Higher live-event and merchandising revenues supported Recorded Music. On a U.S. dollar basis, streaming revenues grew 10% in Recorded Music and 8% in Music Publishing.
Sony's Pictures and Electronics Stay MixedPictures sales declined 4% to ¥315.1 billion, reflecting fewer television series deliveries and lower theatrical revenues. Operating income rose 33% to ¥24.8 billion as marketing costs for current-year theatrical releases decreased. Crunchyroll continued to add subscribers beyond the more than 21 million reported at the end of March.
Entertainment, Technology & Services sales increased 2% to ¥543.9 billion, but operating income was nearly flat at ¥42.6 billion. Forex gains were offset by lower unit sales across businesses, including Displays, and higher memory costs in Imaging and Displays. The imaging market remained stable outside China.
SONY's Margin Expansion AcceleratesOperating income increased 40.2% to ¥476.5 billion, lifting the operating margin to 16.8% from 13%.
Total costs and expenses rose 3.7% to ¥2,363.3 billion, well below the pace of sales growth. Cost of sales was ¥1,796.3 billion, while selling, general and administrative expenses increased to ¥568.4 billion.
SONY's Cash Flow and Balance Sheet ShiftAs of June 30, 2026, cash and equivalents were ¥2,170 billion, down from ¥2,208.9 billion at fiscal year-end, while inventories increased by ¥137.7 billion to ¥1,365.1 billion.
Long-term debt rose to ¥993.7 billion from ¥824.4 billion. After quarter-end, the Music segment completed an acquisition for approximately ¥260 billion in cash, recognizing about ¥550 billion of music catalog assets, ¥310 billion of long-term debt and ¥65 billion of noncontrolling interests.
Cash provided by continuing operations declined to ¥197.4 billion from ¥253.9 billion. Higher inventories, content investment and income tax payments weighed on cash generation.
Sony Raises Fiscal 2026 OutlookSony raised its full-year sales forecast to ¥12,500 billion from ¥12,300 billion and operating income guidance to ¥1,720 billion from ¥1,600 billion. The net income forecast increased to ¥1,210 billion from ¥1,160 billion, while the operating cash flow outlook remained ¥1,500 billion. The planned annual dividend is ¥35 per share, up ¥10.
Game & Network Services received the largest upgrade, with sales raised by ¥120 billion and operating income by ¥60 billion. Music and Imaging & Sensing Solutions also received higher forecasts.
The outlook excludes the financial impact of the July 28 Kumamoto earthquake, which suspended production at the Kumamoto Technology Center while restoration work continues.
SONY’s Zacks RankSony currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent PerformancesSonos, Inc. (SONO - Free Report) reported third-quarter fiscal 2026 non-GAAP earnings of 27 cents per share, which soared 52% year over year and topped the Zacks Consensus Estimate of 24 cents. The 12.5% surprise reflected higher sales and disciplined spending despite rising memory costs. Revenues increased 9% to $375 million, beating the $367 million consensus by 2.3%. Speaker demand and international expansion supported growth. Sonos’ installed base exceeded 53 million connected devices across more than 17 million homes.
Fortive Corporation (FTV - Free Report) reported second-quarter 2026 adjusted earnings of 74 cents per share, which jumped 28.5% year over year and topped the Zacks Consensus Estimate of 71 cents by 4.2%. Revenues rose 7.9% year over year to $1.10 billion and beat the consensus estimate of $1.06 billion by 3.5%. Core revenues increased 6.7%, reflecting price and volume growth in both operating segments.
Flex Ltd. (FLEX - Free Report) reported first-quarter fiscal 2027 adjusted earnings of $1.00 per share, up 38.9% year over year. The figure beat the Zacks Consensus Estimate of 93 cents by 7.5%. Revenues advanced 20.6% to $7.93 billion and topped the consensus mark of $7.58 billion by 4.6%. Broad-based segment growth, led by a 35% expansion in Cloud and Power Infrastructure, supported the results.
Buy Now and Save During Limited-Time Sale to Experience the All-New Haunted Houses Inspired by Sony Pictures' "I Know What You Did Last Summer: The Final Catch" at SeaWorld Orlando, San Diego and San Antonio as Part of This Year's Biggest and Most Immersive Howl-O-Scream Events
, /PRNewswire/ -- This fall, the past refuses to stay buried as SeaWorld Orlando, SeaWorld San Diego, and SeaWorld San Antonio unveil all-new haunted houses inspired by the Sony Pictures horror movie, "I Know What You Did Last Summer," marking the first time the film is being brought to life at a major Halloween event.
This fall, the past refuses to stay buried as SeaWorld Orlando, SeaWorld San Diego, and SeaWorld San Antonio unveil all-new haunted houses inspired by the Sony Pictures horror movie, “I Know What You Did Last Summer,” marking the first time the film is being brought to life at a major Halloween event. Making its terrifying debut during this year's Howl-O-Scream events at all three parks, the immersive experience invites guests to step beyond the screen and into a nightmare where every secret has a price and every corner hides the vengeful Fisherman. The all-new haunted houses premiere on September 11 at all three parks.
Based on the first installment of the iconic horror franchise licensed by Sony Pictures, "I Know What You Did Last Summer: The Final Catch" is a haunted house version of the 1997 hit. Guests will wander through horrifying recreations of several unforgettable movie scenes and into the events that unfold during the original Southport massacre. The movie, and the haunted houses, tell the story of a group of friends who desperately attempt to hide a deadly accident, but their shared secret awakens a killer determined to make them pay. Now, SeaWorld guests will become part of that terrifying story.
"We're always looking for new ways to raise the bar on immersive entertainment, and bringing 'I Know What You Did Last Summer' to our Howl-O-Scream events is an exciting milestone for all three SeaWorld parks," said Marc Swanson, CEO of United Parks & Resorts. "This thrilling franchise has captivated horror fans for years with its suspense and terror. Now our guests will step into that world, facing some of the same heart-pounding moments that made the film come alive. As one thrilling part of a lineup of haunted houses, scare zones, live entertainment and immersive experiences, we are excited to deliver what we believe is our most ambitious Howl-O-Scream yet."
The arrival of "I Know What You Did Last Summer: The Final Catch" marks a major addition to SeaWorld's award-winning Howl-O-Scream events, where guests can experience elaborate haunted houses, immersive scare zones, sinister live entertainment, themed bars, and the most adrenaline-pumping coasters in the dark.
Now is the perfect time to lock in the screams. SeaWorld Orlando and SeaWorld San Diego guests can take advantage of the limited-time Killer Summer Sale, with savings of up to 65% on Howl-O-Scream tickets and up to 70% for Pass Members. At SeaWorld San Antonio, Howl-O-Scream is included with park admission, and guests can save on tickets, Season Passes and Annual Passes with the Summer Sale.
For event dates, tickets and promotions, guests can visit SeaWorld Orlando, SeaWorld San Diego and SeaWorld San Antonio.
About SeaWorld
SeaWorld is a leading marine life theme park and accredited zoo and aquarium that provides experiences that matter while educating and inspiring guests of all ages to care about marine life. Welcoming millions of guests every year, the parks offer fun and enriching experiences from up-close animal encounters and year-round educational programs to award-winning marine-life-themed rides and attractions, special events, and exciting entertainment. For more than 60 years SeaWorld has advanced the conservation of marine life in and outside its parks through science, education, and exceptional animal care that is Humane Certified by American Humane and accredited by the Alliance of Marine Mammal Parks and Aquariums and the Association of Zoos and Aquariums. SeaWorld is one of the largest marine animal rescue organizations in the world, helping more than 43,000 animals to date. The SeaWorld Conservation Fund, a non-profit foundation established in 2003, has provided more than $20 million to nearly 1,400 organizations to advance critical research on every continent. A portion of park proceeds goes toward supporting these longstanding conservation commitments. SeaWorld parks are in Orlando, San Antonio, San Diego, and Abu Dhabi, United Arab Emirates (UAE). SeaWorld is part of the United Parks & Resorts Inc. (NYSE: PRKS) portfolio of theme park brands. For more information, visit us at SeaWorld.com.
About Sony Pictures Entertainment
Sony Pictures Entertainment (SPE) is a subsidiary of Tokyo-based Sony Group Corporation. SPE's global operations encompass motion picture production, acquisition, and distribution; television production, acquisition, and distribution; television networks; digital content creation and distribution; operation of studio facilities; and development of new entertainment products, services, and technologies. Sony Pictures Television operates dozens of wholly owned or joint-venture production companies around the world. SPE's Motion Picture Group production organizations include Columbia Pictures, Screen Gems, TriStar Pictures, 3000 Pictures, Sony Pictures Animation, Stage 6 Films, AFFIRM Films, Sony Pictures International Productions, and Sony Pictures Classics.
See www.sonypictures.com/corp/divisions for more information.
Media Contacts:
SeaWorld Orlando: [email protected]
SeaWorld San Diego: [email protected]
SeaWorld San Antonio: [email protected]
