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Sanofi (SNY) Gains But Lags Market: What You Should Know

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In the latest trading session, Sanofi (SNY - Free Report) closed at $40.82, marking a +0.94% move from the previous day. This move lagged the S&P 500's daily gain of 1.19%. Elsewhere, the Dow gained 1.34%, while the tech-heavy Nasdaq lost 0.18%.

Heading into today, shares of the drugmaker had gained 5.31% over the past month, outpacing the Medical sector's gain of 1.38% and the S&P 500's loss of 0.84% in that time.

Investors will be hoping for strength from Sanofi as it approaches its next earnings release, which is expected to be October 28, 2022. The company is expected to report EPS of $1.31, up 1.55% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $11.99 billion, down 2.52% from the year-ago period.

SNY's full-year Zacks Consensus Estimates are calling for earnings of $4.01 per share and revenue of $44.1 billion. These results would represent year-over-year changes of +3.35% and -1.16%, respectively.

Investors should also note any recent changes to analyst estimates for Sanofi. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 3.13% lower. Sanofi currently has a Zacks Rank of #4 (Sell).

Looking at its valuation, Sanofi is holding a Forward P/E ratio of 10.09. This represents a discount compared to its industry's average Forward P/E of 12.9.

Investors should also note that SNY has a PEG ratio of 1.08 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Large Cap Pharmaceuticals industry currently had an average PEG ratio of 1.74 as of yesterday's close.

The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 150, which puts it in the bottom 41% 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 to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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