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 up 0.5%. By the end of trading, Sanofi fell $1.45 (-2.6%) to $53.29 on average volume. Throughout the day, 2,418,426 shares of Sanofi exchanged hands as compared to its average daily volume of 2,931,700 shares. The stock ranged in price between $53.26-$54.13 after having opened the day at $53.96 as compared to the previous trading day's close of $54.74. Other companies within the Health Care sector that declined today were: Supernus Pharmaceuticals ( SUPN), down 13.1%, Anacor Pharmaceuticals ( ANAC), down 12.5%, Enanta Pharmaceuticals ( ENTA), down 11.8% and ARCA biopharma ( ABIO), down 8.8%.
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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 $145.6 billion and is part of the drugs industry. The company has a P/E ratio of 29.2, above the S&P 500 P/E ratio of 17.7. Shares are up 15.5% year to date as of the close of trading on Wednesday.

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, IPC The Hospitalist Company ( IPCM), down 12.9%, Albany Molecular Research ( AMRI), down 12.2%, Arrowhead Research Corporation ( ARWR), down 11.8% and Insmed ( INSM), down 11.3% , were all gainers within the health care sector with Regeneron Pharmaceuticals ( REGN) 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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