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Is Sanofi (SNY) Stock Undervalued Right Now?

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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.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

Sanofi (SNY - Free Report) is a stock many investors are watching right now. SNY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 14.51, which compares to its industry's average of 16.33. Over the last 12 months, SNY's Forward P/E has been as high as 15.37 and as low as 11.82, with a median of 13.05.

SNY is also sporting a PEG ratio of 1.93. 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. SNY's industry currently sports an average PEG of 2.12. Over the last 12 months, SNY's PEG has been as high as 2.32 and as low as 1.73, with a median of 1.89.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. SNY has a P/S ratio of 3.14. This compares to its industry's average P/S of 4.35.

Finally, investors should note that SNY has a P/CF ratio of 12.65. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. SNY's current P/CF looks attractive when compared to its industry's average P/CF of 16.51. SNY's P/CF has been as high as 12.96 and as low as 10.62, with a median of 11.48, all within the past year.

These are just a handful of the figures considered in Sanofi's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that SNY is an impressive value stock right now.


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