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Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified

Sanofi

(

SNY

) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Sanofi as such a stock due to the following factors:

  • SNY has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $34.0 million.
  • SNY traded 280,697 shares today in the pre-market hours as of 9:02 AM, representing 42.5% of its average daily volume.

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More details on SNY:

Sanofi researches, develops, manufactures, and markets healthcare products. The company operates in three segments: Pharmaceuticals, Human Vaccines, and Animal Health. The stock currently has a dividend yield of 2.5%. SNY has a PE ratio of 27.9. Currently there are 2 analysts that rate Sanofi a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for Sanofi has been 950,600 shares per day over the past 30 days. Sanofi has a market cap of $137.6 billion and is part of the health care sector and drugs industry. Shares are down 3% year-to-date as of the close of trading on Thursday.

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Analysis:

TheStreet Quant Ratings

rates Sanofi as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, expanding profit margins and growth in earnings per share. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 6.3%. Since the same quarter one year prior, revenues slightly increased by 4.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Pharmaceuticals industry average. The net income increased by 17.8% when compared to the same quarter one year prior, going from $1,267.50 million to $1,493.43 million.
  • The gross profit margin for SANOFI is rather high; currently it is at 59.71%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 13.67% trails the industry average.
  • SANOFI has improved earnings per share by 16.7% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, SANOFI reported lower earnings of $1.90 versus $2.44 in the prior year. This year, the market expects an improvement in earnings ($3.52 versus $1.90).
  • In its most recent trading session, SNY has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it is one of the factors that makes this stock an attractive investment.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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