Sanofi (SNY) Stock Sinks As Market Gains: What You Should Know
Sanofi (SNY) closed the most recent trading day at $40.59, moving -0.56% from the previous trading session. This change lagged the S&P 500's daily gain of 0.69%. Meanwhile, the Dow gained 0.64%, and the Nasdaq, a tech-heavy index, lost 0.2%.
Prior to today's trading, shares of the drugmaker had lost 1.09% over the past month. This has was narrower than the Medical sector's loss of 5.7% and the S&P 500's loss of 9.94% in that time.
Investors will be hoping for strength from Sanofi as it approaches its next earnings release. On that day, Sanofi is projected to report earnings of $1.38 per share, which would represent year-over-year growth of 6.98%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $12.66 billion, up 2.91% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.14 per share and revenue of $45.6 billion. These totals would mark changes of +6.7% and +2.19%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Sanofi. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.24% higher within the past month. Sanofi is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Sanofi currently has a Forward P/E ratio of 9.86. For comparison, its industry has an average Forward P/E of 12.63, which means Sanofi is trading at a discount to the group.
Also, we should mention that SNY has a PEG ratio of 1.03. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Large Cap Pharmaceuticals industry currently had an average PEG ratio of 1.81 as of yesterday's close.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 99, putting it in the top 40% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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