Sony Corporation (SONY) Hits Fresh High: Is There Still Room to Run?

Have you been paying attention to shares of Sony (SONY)? Shares have been on the move with the stock up 2.4% over the past month. The stock hit a new 52-week high of $25.78 in the previous session. Sony has gained 21.2% since the start of the year compared to the 6.2% move for the Zacks Consumer Staples sector and the 6.2% return for the Zacks Consumer Products - Staples industry.What's Driving the Outperformance?The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on February 13, 2025, Sony reported EPS of $0.41 versus consensus estimate of $0.29 while it beat the consensus revenue estimate by 19.05%.For the current fiscal year, Sony is expected to post earnings of $1.22 per share on $90.53 billion in revenues. This represents a 11.93% change in EPS on a 7.33% change in revenues. For the next fiscal year, the company is expected to earn $1.43 per share on $91.21 billion in revenues. This represents a year-over-year change of 16.84% and 0.74%, respectively.Valuation MetricsSony may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.Sony has a Value Score of C. The stock's Growth and Momentum Scores are B and A, respectively, giving the company a VGM Score of B.In terms of its value breakdown, the stock currently trades at 21X current fiscal year EPS estimates, which is a premium to the peer industry average of 20.8X. On a trailing cash flow basis, the stock currently trades at 10.8X versus its peer group's average of 12.7X. Additionally, the stock has a PEG ratio of 3.44. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.Zacks RankWe also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Sony currently has a Zacks Rank of #1 (Strong Buy) thanks to favorable earnings estimate revisions from covering analysts.Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Sony meets the list of requirements. Thus, it seems as though Sony shares could have potential in the weeks and months to come.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Sony Corporation (SONY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks