Sanofi (SNY) Gains But Lags Market: What You Should Know
Sanofi (SNY) closed the most recent trading day at $45.18, moving +1.3% from the previous trading session. The stock lagged the S&P 500's daily gain of 3.41%. At the same time, the Dow added 3.44%, and the tech-heavy Nasdaq gained 2.58%.
Heading into today, shares of the drugmaker had lost 3.38% over the past month, outpacing the Medical sector's loss of 9.37% and the S&P 500's loss of 10.46% in that time.
Investors will be hoping for strength from SNY as it approaches its next earnings release, which is expected to be April 24, 2020. On that day, SNY is projected to report earnings of $0.82 per share, which would represent year-over-year growth of 1.23%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.85 billion, up 3.36% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.48 per share and revenue of $42.74 billion, which would represent changes of +4.82% and +5.72%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for SNY. Recent revisions tend to reflect the latest near-term business trends. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.05% lower within the past month. SNY is currently a Zacks Rank #3 (Hold).
Digging into valuation, SNY currently has a Forward P/E ratio of 12.82. This valuation marks a discount compared to its industry's average Forward P/E of 13.78.
Investors should also note that SNY has a PEG ratio of 1.77 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. Large Cap Pharmaceuticals stocks are, on average, holding a PEG ratio of 1.77 based on yesterday's closing prices.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 35, which puts it in the top 14% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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