Trade-Ideas LLC identified

Sanofi

(

SNY

) as a strong on high relative 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 $132.0 million.
  • SNY has traded 916,840 shares today.
  • SNY is trading at 9.73 times the normal volume for the stock at this time of day.
  • SNY is trading at a new high 3.02% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on SNY:

Sanofi researches, develops, manufactures, and markets various therapeutic solutions. The company operates in three segments: Pharmaceuticals, Vaccines, and Animal Health. The stock currently has a dividend yield of 2.9%. SNY has a PE ratio of 21. Currently there are 3 analysts that rate Sanofi a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Sanofi has been 2.1 million shares per day over the past 30 days. Sanofi has a market cap of $100.4 billion and is part of the health care sector and drugs industry. Shares are down 8.2% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Sanofi as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income and expanding profit margins. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.

Highlights from the ratings report include:

  • SNY's revenue growth has slightly outpaced the industry average of 1.5%. Since the same quarter one year prior, revenues slightly increased by 2.3%. 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 significantly exceeded that of the S&P 500 and the Pharmaceuticals industry. The net income increased by 12.7% when compared to the same quarter one year prior, going from $1,098.80 million to $1,238.09 million.
  • The gross profit margin for SANOFI is rather high; currently it is at 63.53%. 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 13.71% trails the industry average.
  • SANOFI has improved earnings per share by 10.0% 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 $1.79 versus $2.01 in the prior year. This year, the market expects an improvement in earnings ($3.16 versus $1.79).
  • SNY has underperformed the S&P 500 Index, declining 19.57% from its price level of one year ago. 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 could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.

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