Sanofi (SNY): Today's Featured Health Care Laggard

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 Health Care sector lower today making it today's featured Health Care laggard. The sector as a whole closed the day down 0.2%. By the end of trading, Sanofi fell $1.44 (-3.2%) to $43.06 on average volume. Throughout the day, 3.4 million shares of Sanofi exchanged hands as compared to its average daily volume of 2.6 million shares. The stock ranged in price between $42.67-$43.68 after having opened the day at $43.50 as compared to the previous trading day's close of $44.50. Other companies within the Health Care sector that declined today were: Escalon Medical Corporation ( ESMC), down 22.4%, MEI Pharma ( MEIP), down 20.5%, Allied Healthcare Products ( AHPI), down 16%, and Aoxing Pharmaceutical Company ( AXN), down 13.3%.
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Sanofi, together with its subsidiaries, researches, develops, manufactures, and markets healthcare products worldwide. Sanofi has a market cap of $115.13 billion and is part of the drugs industry. The company has a P/E ratio of 23.4, above the average drugs industry P/E ratio of 15.6 and above the S&P 500 P/E ratio of 17.7. Shares are up 21.8% year to date as of the close of trading on Thursday. 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 positive front, China Kanghui Holdings ( KH), up 20.9%, Prima Biomed Ltd. ADR ( PBMD), up 19.5%, Dehaier Medical Systems ( DHRM), up 15.5%, and AEterna Zentaris ( AEZS), up 14.4%, were all gainers within the health care sector with DaVita ( DVA) being today's featured health care sector leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the health care sector could consider Health Care Select Sector SPDR ( XLV) while those bearish on the health care sector could consider ProShares Ultra Short Health Care ( RXD).

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