Sanofi (SNY) Outpaces Stock Market Gains: What You Should Know
Sanofi (SNY) closed at $53.22 in the latest trading session, marking a +1.16% move from the prior day. This move outpaced the S&P 500's daily gain of 0.17%. Elsewhere, the Dow gained 0.6%, while the tech-heavy Nasdaq added 0.67%.
Prior to today's trading, shares of the drugmaker had gained 10.29% over the past month. This has outpaced the Medical sector's gain of 0.23% and the S&P 500's gain of 0.25% in that time.
Wall Street will be looking for positivity from Sanofi as it approaches its next earnings report date. The company is expected to report EPS of $1.10, up 0.92% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $11.27 billion, up 3.85% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.40 per share and revenue of $48.91 billion, which would represent changes of +1.15% and +8.3%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Sanofi. These revisions help to show the ever-changing nature of near-term business trends. 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. 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 remained stagnant. Sanofi currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Sanofi has a Forward P/E ratio of 11.95 right now. For comparison, its industry has an average Forward P/E of 14.02, which means Sanofi is trading at a discount to the group.
Also, we should mention that SNY has a PEG ratio of 1.62. 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. The Large Cap Pharmaceuticals industry currently had an average PEG ratio of 1.62 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 97, which puts it in the top 39% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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