Sanofi (SNY): Today's Featured Drugs Winner

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 was unchanged today. By the end of trading, Sanofi rose $0.59 (1.1%) to $53.63 on light volume. Throughout the day, 1,368,782 shares of Sanofi exchanged hands as compared to its average daily volume of 2,954,700 shares. The stock ranged in a price between $53.42-$53.96 after having opened the day at $53.93 as compared to the previous trading day's close of $53.04. Other companies within the Drugs industry that increased today were: Affymax ( AFFY), up 43.7%, Pain Therapeutics ( PTIE), up 14.5%, MediciNova ( MNOV), up 12.3% and Aoxing Pharmaceutical Company ( AXN), up 11.0%.
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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 $149.2 billion and is part of the health care sector. The company has a P/E ratio of 29.9, above the S&P 500 P/E ratio of 17.7. Shares are up 11.9% year to date as of the close of trading on Monday. Currently there are 7 analysts that rate Sanofi a buy, no analysts rate it a sell, and 1 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, 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, Synta Pharmaceuticals ( SNTA), down 15.5%, Albany Molecular Research ( AMRI), down 14.3%, Atossa Genetics ( ATOS), down 13.7% and Clovis Oncology ( CLVS), down 13.2% , were all laggards within the drugs industry with Biogen Idec ( BIIB) 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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