Declines From Sanofi (SNY) Drive Down Drugs Industry

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 0.4%. By the end of trading, Sanofi fell $1.93 (-3.5%) to $52.44 on heavy volume. Throughout the day, 4.9 million shares of Sanofi exchanged hands as compared to its average daily volume of 2.6 million shares. The stock ranged in price between $51.94-$53.35 after having opened the day at $53.29 as compared to the previous trading day's close of $54.37. Other companies within the Drugs industry that declined today were: Tianyin Pharmaceutical ( TPI), down 9.5%, China Pharma ( CPHI), down 9.3%, Pacific Biosciences of California ( PACB), down 8.3%, and Telik ( TELK), down 8.1%.
  • 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 $144.34 billion and is part of the health care sector. The company has a P/E ratio of 28.9, above the S&P 500 P/E ratio of 17.7. Shares are up 14.8% year to date as of the close of trading on Tuesday. 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, Acura Pharmaceuticals ( ACUR), up 34%, Oragenics ( OGEN), up 25.4%, Oragenics ( ORNI), up 25.4%, and Alkermes ( ALKS), up 16.1%, were all gainers within the drugs industry with Abbott Laboratories ( ABT) 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).

Exclusive Offer: Jim Cramer's 'go-to' small/mid-cap guru Bryan Ashenberg only buys stocks he thinks could return 50-100% See his top picks for 14-days FREE.