Sony Group Corporation
SONY
is planning to invest approximately 800 billion yen ($5.83 billion) to construct a factory in Western Japan, per a report from
Reuters.
Located in Kumamoto Prefecture, the factory will produce smartphone image sensors aimed at tapping the rising demand for smart chips after the pandemic-induced slowdown.
The company intends to carefully assess the timing of the development and the amount of investment owing to rising concerns of a global economic slowdown. The company plans to fully launch the factory by 2025, added the report.
Sony Corporation Price and Consensus
Sony Corporation price-consensus-chart
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Sony Corporation Quote
Sony plans to use source logic chips for image sensors from the Taiwan Semiconductor Manufacturing Company’s factory in Kumamoto.
Per a report from
MarketsAndMarkets
, the image sensor market is estimated at $26.1 billion in 2022 and is projected to reach $38.6 billion by 2027, registering a CAGR of 8.1%. The industry is likely to benefit from the increasing demand for multiple cameras in a smartphone and the ongoing digitalization, added the report.
Previously, Sony
announced
that it is planning to roll out its wearable motion capture sensors in Japan in January 2023 at a price of ¥49,500 (approximately $359). The product can be purchased from Sony Store, with pre-order sales scheduled to start in mid-December.
The company also collaborated with Microsoft to create solutions that make AI (artificial intelligence)-powered smart cameras and video analytics easier to access for their mutual customers.
Sony is a well-known player in the video game space, with its PlayStation being one of the most sought-after gaming consoles in the world. The company’s Games & Network Services segment is one of the largest contributors to the top line.
The company has raised its guidance for the fiscal year ending Mar 31, 2023, from ¥11,500 billion to ¥11,600 billion. The top-line performance is likely to be driven by an improvement in GN&S, Music, Pictures and ET&S segment sales.
Sony currently has a Zacks Rank #3 (Hold). The stock has lost 35.6% in the past year compared with the
sub-industry’s
decline of 35%.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks from the broader consumer discretionary sector are
RCI Hospitality
RICK
,
Arista Networks
ANET
and
Lululemon Athletica
LULU
. Arista currently sports a Zacks Rank #1 (Strong Buy), whereas RCI and Lululemon presently hold a Zacks Rank #2 (Buy). You can see
the complete list of today’s Zacks #1 Rank stocks.
The Zacks Consensus Estimate for RCI Hospitality’s 2023 earnings is pegged at $5.95 per share, up 2.6% in the past 60 days. The long-term earnings growth rate is anticipated to be 12%.
RCI Hospitality’s earnings beat the Zacks Consensus Estimate in three of the last four quarters, the average being 6.2%. Shares of RICK have increased 30.1% in the past year.
The Zacks Consensus Estimate for Arista Networks 2022 earnings is pegged at $4.37 per share, up 8.2% in the past 60 days. The long-term earnings growth rate is anticipated to be 17.5%.
Arista Networks’ earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 12.7%. Shares of ANET have declined 0.9% in the past year.
The Zacks Consensus Estimate for Lululemon’s 2023 earnings is pegged at $9.93 per share, up 0.5% in the past 60 days. The long-term earnings growth rate is anticipated to be 20%.
Lululemon’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 6.7%. Shares of LULU have decreased 22.4% in the past year.
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