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Are You a Value Investor? This 1 Stock Could Be the Perfect Pick

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Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.

While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.

Why Investors Should Pay Attention to This Value Stock

Different than growth or momentum investors, value-focused investors are all about finding good stocks at good prices, and discovering which companies are trading under what their true value is before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to help pick out the most attractive and discounted stocks.

Sony (SONY)

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 Zacks Rank #2 (Buy) stock, with a Value Style Score of B and VGM Score of A. Shares are currently trading at a forward P/E of 17.5X for the current fiscal year compared to the Audio Video Production industry's P/E of 18.6X. Additionally, SONY has a PEG Ratio of 9.8 and a Price/Cash Flow ratio of 10.7X. Value investors should also note SONY's Price/Sales ratio of 1.7X.

A company's earnings performance is important for value investors as well. For fiscal 2025, three analysts revised their earnings estimate higher in the last 60 days for SONY, while the Zacks Consensus Estimate has increased $0.05 to $1.26 per share. SONY also holds an average earnings surprise of 28.4%.

With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding SONY to their portfolios.

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This article originally published on Zacks Investment Research (zacks.com).

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