Sanofi (SNY): Drugs' Featured Daily 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 down 0.2%. By the end of trading, Sanofi fell 77 cents (-1.5%) to $49.96 on heavy volume. Throughout the day, 5.8 million shares of Sanofi exchanged hands as compared to its average daily volume of two million shares. The stock ranged in price between $49.45-$50.22 after having opened the day at $49.53 as compared to the previous trading day's close of $50.73. Other companies within the Drugs industry that declined today were: Idera Pharmaceuticals ( IDRA), down 10.2%, Pharmacyclics Incorporated ( PCYC), down 8.4%, ARCA biopharma ( ABIO), down 7.8%, and ADVENTRX Pharmaceuticals ( ANX), down 7.8%.
  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

Sanofi researches, develops, manufactures, and markets healthcare products worldwide. The company operates through Pharmaceuticals, Human Vaccines, and Animal Health segments. Sanofi has a market cap of $131.52 billion and is part of the health care sector. The company has a P/E ratio of 26.4, above the S&P 500 P/E ratio of 17.7. Shares are up 3.9% year to date as of the close of trading on Wednesday. Currently there are nine analysts that rate Sanofi a buy, no analysts rate it a sell, and none rate 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, largely solid financial position with reasonable debt levels by most measures, 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, Anacor Pharmaceuticals ( ANAC), up 26%, ACADIA Pharmaceuticals ( ACAD), up 23.9%, Affymax ( AFFY), up 17.5%, and Cleveland BioLabs ( CBLI), up 8.9%, were all gainers within the drugs industry with Vivus ( VVUS) 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).

It's Official: Action Alerts PLUS beats the S&P 500 with Dividends Reinvested! Cramer and Link were up 16.72% in 2012. Were you? See what they are trading for 14-days FREE.
null

If you liked this article you might like

Biotech Mailbag: Buy Dip in T2 Biosystems?

FDA Official Calls for Ending Codeine Use in Kids Cough Products

Big Drug Makers Could Face More Pressure on Codeine Remedies for Kids

Sanofi Has Good Potential Upside

European Pharma Companies Slip on MS Pricing Probe