Sanofi (SNY): Today's Featured Drugs Winner

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Sanofi ( SNY) pushed the Drugs industry higher today making it today's featured drugs winner. The industry as a whole closed the day up 0.8%. By the end of trading, Sanofi rose 46 cents (1.1%) to $44.22 on average volume. Throughout the day, three million shares of Sanofi exchanged hands as compared to its average daily volume of 2.8 million shares. The stock ranged in a price between $43.91-$44.36 after having opened the day at $44.15 as compared to the previous trading day's close of $43.76. Other companies within the Drugs industry that increased today were: Cyclacel Pharmaceuticals ( CYCC), up 27.2%, MEI Pharma ( MEIP), up 23.7%, Galectin Therapeutics ( GALT), up 18.5%, and Prana Biotechnology ( PRAN), up 18.1%.
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Sanofi, together with its subsidiaries, researches, develops, manufactures, and markets healthcare products worldwide. Sanofi has a market cap of $115.48 billion and is part of the health care sector. The company has a P/E ratio of 23.5, above the average drugs industry P/E ratio of 15.7 and above the S&P 500 P/E ratio of 17.7. Shares are up 19.8% year to date as of the close of trading on Tuesday. Currently there are seven analysts that rate Sanofi a buy, no analysts rate it a sell, and one rates it a hold.

TheStreet Ratings rates Sanofi as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, attractive valuation levels, expanding profit margins, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the negative front, Somaxon Pharmaceuticals ( SOMX), down 11.2%, Idenix Pharmaceuticals ( IDIX), down 9.4%, Biosante Pharmaceuticals ( BPAX), down 8.4%, and OxiGene ( OXGN), down 7.7%, were all laggards within the drugs industry with Questcor Pharmaceuticals ( QCOR) being today's drugs industry laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the drugs industry could consider SPDR S&P Pharmaceuticals ETF ( XPH) while those bearish on the drugs industry could consider ProShares UltraShort Nasdaq Biotech ( BIS).

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