Sanofi (SNY): Drugs' Featured Champion Of The Day

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 0.4%. By the end of trading, Sanofi rose 55 cents (1.1%) to $51.55 on heavy volume. Throughout the day, 3.7 million shares of Sanofi exchanged hands as compared to its average daily volume of 2.4 million shares. The stock ranged in a price between $50.97-$51.67 after having opened the day at $51.46 as compared to the previous trading day's close of $51. Other companies within the Drugs industry that increased today were: Atossa Genetics ( ATOS), up 16.4%, Synergy Pharmaceuticals ( SGYP), up 16%, Prima Biomed ( PBMD), up 14.6%, and Sarepta Therapeutics ( SRPT), up 11.2%.
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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 $135.86 billion and is part of the health care sector. The company has a P/E ratio of 27.2, above the S&P 500 P/E ratio of 17.7. Shares are up 7.6% year to date as of the close of trading on Monday. 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 negative front, Idera Pharmaceuticals ( IDRA), down 9.5%, Chelsea Therapeutics International ( CHTP), down 9.1%, Biocryst Pharmaceuticals ( BCRX), down 8.8%, and Delcath Systems ( DCTH), down 7.9%, were all laggards within the drugs industry with Pharmacyclics Incorporated ( PCYC) 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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