Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link. Trade-Ideas LLC identified Sanofi ( SNY) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Sanofi as such a stock due to the following factors:
- SNY has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $85.1 million.
- SNY traded 202,150 shares today in the pre-market hours as of 8:31 AM, representing 12.2% of its average daily volume.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in SNY with the Ticky from Trade-Ideas. See the FREE profile for SNY NOW at Trade-Ideas More details on SNY: Sanofi researches, develops, manufactures, and markets healthcare products worldwide. The company operates through Pharmaceuticals, Human Vaccines, and Animal Health segments. The stock currently has a dividend yield of 2.4%. SNY has a PE ratio of 28.0. Currently there are 2 analysts that rate Sanofi a buy, no analysts rate it a sell, and 3 rate it a hold. The average volume for Sanofi has been 1.2 million shares per day over the past 30 days. Sanofi has a market cap of $138.6 billion and is part of the health care sector and drugs industry. Shares are down 3.1% year-to-date as of the close of trading on Monday. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. TheStreetRatings.com Analysis: TheStreet Quant Ratings rates Sanofi as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Highlights from the ratings report include:
- Despite its growing revenue, the company underperformed as compared with the industry average of 2.5%. Since the same quarter one year prior, revenues slightly increased by 1.3%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- The gross profit margin for SANOFI is rather high; currently it is at 58.20%. Regardless of SNY's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 13.87% trails the industry average.
- SANOFI's earnings per share declined by 15.6% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, SANOFI reported lower earnings of $2.45 versus $2.81 in the prior year. This year, the market expects an improvement in earnings ($3.52 versus $2.45).
- Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Pharmaceuticals industry. The net income has decreased by 15.6% when compared to the same quarter one year ago, dropping from $2,034.22 million to $1,717.82 million.
- You can view the full Sanofi Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.