Back to top

Image: Bigstock

Is Sanofi (SNY) a Great Value Stock Right Now?

Read MoreHide Full Article

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

Sanofi (SNY - Free Report) is a stock many investors are watching right now. SNY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 12.48, which compares to its industry's average of 16.19. 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 12.98.

Investors should also note that SNY holds 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 PEG compares to its industry's average PEG of 2.10. SNY's PEG has been as high as 2.28 and as low as 1.47, with a median of 1.87, 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. 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 2.8. This compares to its industry's average P/S of 4.28.

Finally, our model also underscores that SNY has a P/CF ratio of 7.69. 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. This stock's P/CF looks attractive against its industry's average P/CF of 16.51. Over the past 52 weeks, SNY's P/CF has been as high as 12.96 and as low as 6.55, with a median of 10.80.

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.

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

Sanofi (SNY) - free report >>

Published in