Sony Stock Appears to Be a Solid Investment Bet Now: Here's Why

Sony Group Corporation SONY is experiencing strong growth driven by sustained momentum in its Game & Network Services (“G&NS”) and Music segments. Additionally, the company has been enhancing its business operations through strategic acquisitions and joint ventures. Shares of the company have gained 23.1% in the past six months compared with the industry's growth of 20.8%.Image Source: Zacks Investment ResearchWith healthy fundamentals, this Zacks Rank #2 (Buy) stock appears to be a solid investment option at the moment.  You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.Key Growth Drivers for SONYSony plans to grow the G&NS segment by expanding the stable installed base of PlayStation consoles, enhancing gaming experiences, expanding into PCs and improving first-party software titles. Sony expects to release key single-player game titles every year from fiscal 2025 onward.For the fiscal second quarter, total revenues rose 3% year over year to ¥2,905.6 billion. This uptick was driven by an increase in revenues in the G&NS and I&SS segments. G&NS sales were up 12% year over year to ¥1,071.5 billion. Segmental sales increased on the back of positive impacts of the forex movement, higher sales from network services, notably PlayStation Plus and rising sales of non-first-party titles, including add-on content, amid a fall in hardware sales. In September 2024, active user accounts of PlayStation were up 8% year over year to 116 million. Total playtime for PlayStation users also increased 14%.For fiscal 2024, Sony has raised its outlook for the G&NS segment. Revenues are now expected to be ¥4,490 billion compared with the earlier projection of ¥4,320 billion, owing to the positive impacts of forex rates. Operating income for this business is forecast to be ¥355 billion in fiscal 2024 compared with the previous forecast of ¥320 billion.Sony Corporation Price and Consensus Sony Corporation price-consensus-chart | Sony Corporation QuoteMoreover, the company plans to grow the Music segment’s business by expanding in markets where streaming is gaining popularity, particularly emerging markets, by leveraging digital music distribution and artist services provided by The Orchard and AWAL. In the last reported quarter, Music sales improved 10% year over year to ¥448.2 billion on the back of higher revenues from streaming services in Recorded Music and Music Publishing. Higher revenues from live events, merchandising and licensing in Recorded Music also acted as a tailwind.Apart from existing businesses, Sony has been enhancing its business segments through strategic acquisitions and joint ventures. Recently, the company announced a strategic capital and business tie-up with KADOKAWA CORPORATION ("KADOKAWA"), aimed at transforming the global entertainment landscape. The agreement includes a third-party allotment by KADOKAWA to Sony, wherein Sony will acquire 12,054,100 new KADOKAWA shares for nearly ¥50 billion. With this acquisition, Sony is set to become KADOKAWA’s largest shareholder, holding around 10% of its shares, including those acquired in February 2021.In October 2024, Sony acquired KinaTrax, Inc, which specializes in motion capture technology and data analysis for sports. This technology is capable of assembling in-game biomechanical performance data on athletes. KinaTrax will be integrated with Sony’s Hawk-Eye Innovations Limited, the mainstay of Sony’s sports business.  In June 2024, Sony Pictures Entertainment acquired a Texas-based Alamo Drafthouse Cinema theatrical exhibitor. Alamo is a premium dine-in cinema chain that operates 41 theaters across the United States. It boasts of a four-million-strong loyalty member base, mostly the younger generation. Further, it plans to integrate Alamo and Crunchyroll with a focus on investments in games, music, anime and movies.Other Stocks to ConsiderSome other top-ranked stocks from the broader technology space are BlackBerry Limited BB, Gilat Satellite Networks Ltd. GILT and RADCOM Ltd. RDCM. BB carries a Zacks Rank #1 (Strong Buy), GILT & RDCM presently carry a Zacks Rank #2.BlackBerry Limited earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 131.25%. In the last reported quarter, BB delivered an earnings surprise of 200%. Its shares have surged 62.2% in the past three months.The Zacks Consensus Estimate for Gilat Satellite’s 2024 earnings per share (EPS) is pegged at 48 cents, unchanged in the past 30 days. In the last reported quarter, Gilat Satellite delivered an earnings surprise of 75%. Its shares have jumped 37.9% in the past six months.The Zacks Consensus Estimate for RADCOM’ 2024 EPS is pegged at 80 cents, unchanged in the past seven days. RDCM’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 25.36%. Its shares have surged 48.7% in the past year.Research Chief Names "Single Best Pick to Double"From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. 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 Gilat Satellite Networks Ltd. (GILT): Free Stock Analysis Report Radcom Ltd. (RDCM): Free Stock Analysis Report BlackBerry Limited (BB): Free Stock Analysis Report Sony Corporation (SONY): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks