Shares of entertainment-and-electronics conglomerate Sony (NYSE:SNE) rose 19.3% in April 2019, according to data from S&P Global Market Intelligence. This boost, driven by a decent fourth-quarter report and some analyst chatter, followed a 12% drop in March, so it's fair to call this a rebound.
Sony gained some new competition in the video gaming market in March, then made investors forget about that threat by doubling its bottom-line earnings year over year on a mere 1.5% revenue boost. Activist investor Dan Loeb, who has been prodding Sony's board of directors with different ideas on how to grow the company, stepped back and called a truce. Later, analyst firms Jefferies and Macquarie upgraded Sony's stock to a buy.
Investors take notice when companies post results strong enough to inspire even their harshest critics, including Third Point's Dan Loeb, in Sony's case. The entertainment industry was never a serene market sector but Sony appears to be finding ways to stay relevant in a cutthroat environment.
At this point, Sony's shares trade 16% above their 52-week lows at a very affordable 8.7 times trailing earnings, or 5.6 times free cash flows. In a nutshell, Sony stock is priced for absolute disaster, but the company might deserve a more positive market-maker review.