7 Most Undervalued Foreign Stocks to Buy According to Analysts

4) Sony Group Corporation (NYSE:SONY)

Forward P/E Ratio as of 10 October: 16.37x        

Average Upside Potential: 24.9%

Number of Hedge Fund Holders: 29

Sony Group Corporation (NYSE:SONY) is primarily engaged in designing, developing, producing, and selling electronic equipment for the consumer, professional, and industrial markets in Japan and internationally.

Market experts believe that Sony Group Corporation (NYSE:SONY)’s growth trajectory is expected to be aided by its asset-light business model and focus on content acquisition. The company’s significant investments in Sony Music and PlayStation and related game operations are expected to further enhance the company’s competitive edge. Over the past several years, Sony Group Corporation (NYSE:SONY) acquired numerous content-creation companies across games, music, and film/TV. It continues to witness the benefits of digital distribution which are providing it with more durable revenue streams.

In the recent earnings call, Sony Group Corporation (NYSE:SONY) highlighted that PlayStation 5’s growing base and solid software titles bolstered its Game & Network Services segment. The company’s new division, Sony Pictures Experiences, focuses on enhancing its live entertainment business. Market experts believe that this division should strengthen its position in the experiential live entertainment business. The company plans to continue producing larger sensors for ultra-wide angle and telephoto cameras. It targets to capitalize on the steady recovery of the global smartphone market.

While Sony Group Corporation (NYSE:SONY) remains vigilant about its competitors in the semiconductor market, it continues to focus on high-end product production. With a strong emphasis on high-value products, IP strengthening, and monitoring macroeconomic factors, the company has been positioning itself to navigate through potential headwinds while, at the same time, capitalizing on diverse revenue streams.

As per Wall Street, the shares of the company have an average price target of $108.00. Insider Monkey’s Q2 2024 database revealed that Sony Group Corporation (NYSE:SONY) was in the portfolio of 29 hedge funds.