In the latest trading session, Sanofi (SNY) closed at $53.67, marking a +0.36% move from the previous day. This change lagged the S&P 500’s 1.15% gain on the day. Elsewhere, the Dow gained 0.63%, while the tech-heavy Nasdaq added 7.23%.
Heading into today, shares of the drugmaker had gained 1.85% over the past month, lagging the Medical sector’s gain of 2.4% and the S&P 500’s gain of 3.08% in that time.
Investors will be hoping for strength from Sanofi as it approaches its next earnings release, which is expected to be July 28, 2023. 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.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.47 per share and revenue of $49.32 billion, which would represent changes of +2.76% and +9.2%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Sanofi. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.04% higher. 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 11.98 right now. This valuation marks a discount compared to its industry’s average Forward P/E of 14.76.
We can also see that SNY currently has a PEG ratio of 1.75. 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 was holding an average PEG ratio of 1.75 at yesterday’s closing price.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 90, putting it in the top 36% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.