Sanofi (SNY): Today's Featured Drugs 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 Drugs industry lower today making it today's featured Drugs laggard. The industry as a whole closed the day up 1.3%. By the end of trading, Sanofi fell 55 cents (-1.3%) to $43.62 on light volume. Throughout the day, 956,861 shares of Sanofi exchanged hands as compared to its average daily volume of two million shares. The stock ranged in price between $43.42-$43.82 after having opened the day at $43.73 as compared to the previous trading day's close of $44.17. Other companies within the Drugs industry that declined today were: Pharmacyclics Incorporated ( PCYC), down 10.5%, China Pharma ( CPHI), down 9.3%, Endo Health Solutions ( ENDP), down 8.6%, and Threshold Pharmaceuticals ( THLD), down 8.5%.
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Sanofi, together with its subsidiaries, researches, develops, manufactures, and markets healthcare products worldwide. Sanofi has a market cap of $118.6 billion and is part of the health care sector. The company has a P/E ratio of 24.1, above the S&P 500 P/E ratio of 17.7. Shares are up 20.9% year to date as of the close of trading on Friday. Currently there are eight 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 revenue growth, solid stock price performance and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, MEI Pharma ( MEIP), up 79.5%, Novogen ( NVGN), up 53.6%, BioMarin Pharmaceuticals ( BMRN), up 31.2%, and InterMune ( ITMN), up 14.4%, were all gainers within the drugs industry with Alexion Pharmaceuticals ( ALXN) being today's featured drugs industry leader.

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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