NEW YORK (TheStreet) -- Sony (SNE) is betting on a turnaround. The question is, will its stock turn around, too?
The American depositary receipts, down 1.5% year to date, have lost over 85% of their value since the turn of the century. But the stock -- recently trading at $17.50 -- may present a good value for long-term investors.
Sony, which has struggled because of intense competition, is trying to change its fortunes through massive restructuring. The company is selling assets to shore up its balance sheet and is banking on its console and mobile units for growth.
Because of its divestitures and restructuring, the company might struggle with top- and bottom-line growth in the coming year. Analysts, however, expect big improvements: According to Thomson Reuters, they are estimating Sony will earn 79 cents a share in fiscal 2015 ending next March, compared with an estimated loss of 92 cents a share for the fiscal year ended last Friday.
Sony has failed to compete effectively with Samsung (SSNLF), LG Electronics, Apple (AAPL) and several low-cost Chinese companies. The rise of these companies has come at the cost of the decline of Japanese electronic equipment manufacturers such as Sharp, Sony and Panasonic.
Like Sony, Panasonic has also struggled with growth. The company lost more than $14.7 billion over its two fiscal years ended in March 2013. Panasonic, however, has been able to pull itself together. Following a massive restructuring, job cuts and a renewed focus on industrial products, the company has boosted its bottom line. According to Reuters, the company, which was once on the verge of bankruptcy, is now thinking about investing a billion dollars in Tesla's (TSLA) enormous Giga factory.