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Why Sony (SNE) Is A Strong Value Stock

Value stocks might not be in vogue these days—especially as stocks like Tesla TSLA skyrocket—but nevertheless, investors in search of stability and sound fundamentals might look no further than tech giant Sony SNE as a strong value play.

At a time when growth stocks and companies such as Amazon AMZN are trading at 270x earnings, Sony presents investors who long for low valuation metrics with a great option. Sony sports an “A” grade for Value in our Style Scores system, and maybe more importantly, it is also currently a Zacks Rank #1 (Strong Buy).

This Japanese electronics power is a household name, with a diverse business portfolio that includes everything from televisions to video games to semiconductors. On top of that, Sony is part of an industry that currently ranks in the top 8% of the 265 different industries tracked by Zacks.

Now that we have some of the basics about Sony down, let’s dive deeper into some of the company’s valuation fundamentals to show value investors what the company has to offer.

Sony Corp Ord Price to Book Value

Sony Corp Ord Price to Book Value | Sony Corp Ord Quote

Sony’s “A” grade for Value in our Style Scores system is backed up by its 0.67 P/S ratio, which marks a major discount compared to other companies in its industry. The company’s P/B ratio of 1.64 also represents a discount against the “Audio Video Production” average.

What’s more, Sony is currently trading at just 15.98x earnings, which marks a discount to competitors such as Panasonic PCRFY, as well as the S&P 500 average.

Along with these traditional valuation metrics, Sony’s 2.93 cash flow per share ratio tops the “Audio Video Production” industry’s negative rate. And as a little side note, Sony crushed earnings estimates in both of its last two quarters, and its shares have surged over 32% this year.

It seems clear that Sony represents strong value for investors. When paired with its current Zacks Rank #1 (Strong Buy) and its overall “A” VGM grade, Sony could be a stock that investors on the hunt for value might want to consider.

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Sony Corp Ord (SNE): Free Stock Analysis Report
 
Panasonic Corp. (PCRFY): Free Stock Analysis Report
 
Amazon.com, Inc. (AMZN): Free Stock Analysis Report
 
Tesla Inc. (TSLA): Free Stock Analysis Report
 
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