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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company to watch right now is Sanofi (SNY - Free Report) . SNY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 13.43 right now. For comparison, its industry sports an average P/E of 14.96. Over the past 52 weeks, SNY's Forward P/E has been as high as 15.37 and as low as 10.69, with a median of 13.68.
Investors will also notice that SNY has a PEG ratio of 1.72. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. SNY's industry currently sports an average PEG of 1.99. SNY's PEG has been as high as 2.28 and as low as 1.47, with a median of 1.90, all within the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. SNY has a P/S ratio of 3.16. This compares to its industry's average P/S of 4.27.
Finally, we should also recognize that SNY has a P/CF ratio of 10.47. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 15.31. Over the past 52 weeks, SNY's P/CF has been as high as 12.67 and as low as 6.55, with a median of 9.80.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Sanofi is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, SNY feels like a great value stock at the moment.
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Is Sanofi (SNY) Stock Undervalued Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company to watch right now is Sanofi (SNY - Free Report) . SNY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 13.43 right now. For comparison, its industry sports an average P/E of 14.96. Over the past 52 weeks, SNY's Forward P/E has been as high as 15.37 and as low as 10.69, with a median of 13.68.
Investors will also notice that SNY has a PEG ratio of 1.72. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. SNY's industry currently sports an average PEG of 1.99. SNY's PEG has been as high as 2.28 and as low as 1.47, with a median of 1.90, all within the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. SNY has a P/S ratio of 3.16. This compares to its industry's average P/S of 4.27.
Finally, we should also recognize that SNY has a P/CF ratio of 10.47. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 15.31. Over the past 52 weeks, SNY's P/CF has been as high as 12.67 and as low as 6.55, with a median of 9.80.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Sanofi is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, SNY feels like a great value stock at the moment.