Sanofi (SNY) closed at $51.01 in the latest trading session, marking a +1.09% move from the prior day. The stock lagged the S&P 500’s daily gain of 1.45%. Elsewhere, the Dow gained 2.12%, while the tech-heavy Nasdaq added 5.41%.
Heading into today, shares of the drugmaker had lost 7.8% over the past month, lagging the Medical sector’s loss of 3.5% and the S&P 500’s gain of 1.53% in that time.
Sanofi will be looking to display strength as it nears its next earnings release. In that report, analysts expect Sanofi to post earnings of $0.87 per share. This would mark a year-over-year decline of 5.43%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $11.41 billion, up 5.89% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.47 per share and revenue of $49.32 billion. These totals would mark changes of +2.76% and +9.2%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Sanofi. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.53% lower. Sanofi is currently a Zacks Rank #3 (Hold).
Investors should also note Sanofi’s current valuation metrics, including its Forward P/E ratio of 11.3. This represents a discount compared to its industry’s average Forward P/E of 14.56.
Meanwhile, SNY’s PEG ratio is currently 1.65. 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. Large Cap Pharmaceuticals stocks are, on average, holding a PEG ratio of 1.65 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 103, which puts it in the top 41% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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