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Sanofi (SNY) Stock Sinks As Market Gains: What You Should Know

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Sanofi (SNY - Free Report) closed at $48.49 in the latest trading session, marking a -0.66% move from the prior day. This change lagged the S&P 500's daily gain of 0.25%. At the same time, the Dow added 0.08%, and the tech-heavy Nasdaq gained 7.26%.

Heading into today, shares of the drugmaker had gained 0.54% over the past month, outpacing the Medical sector's loss of 0.75% and lagging the S&P 500's gain of 5.73% in that time.

Wall Street will be looking for positivity from Sanofi as it approaches its next earnings report date. This is expected to be February 3, 2023. On that day, Sanofi is projected to report earnings of $0.90 per share, which would represent year-over-year growth of 13.92%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $11.51 billion, up 0.68% from the year-ago period.

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 a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 2.26% higher. Sanofi is currently a Zacks Rank #2 (Buy).

Investors should also note Sanofi's current valuation metrics, including its Forward P/E ratio of 11.09. This valuation marks a discount compared to its industry's average Forward P/E of 14.29.

Investors should also note that SNY has a PEG ratio of 1.14 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Large Cap Pharmaceuticals was holding an average PEG ratio of 1.74 at yesterday's closing price.

The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 153, putting it in the bottom 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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