Sanofi (SNY) closed at $51.08 in the latest trading session, marking a +0.33% move from the prior day. This move lagged the S&P 500's daily gain of 1.47%. At the same time, the Dow added 2.32%, and the tech-heavy Nasdaq gained 1.2%.
Prior to today's trading, shares of the drugmaker had gained 4.58% over the past month. This has outpaced the Medical sector's loss of 0.38% and the S&P 500's gain of 0.74% in that time.
Wall Street will be looking for positivity from SNY as it approaches its next earnings report date. On that day, SNY is projected to report earnings of $0.70 per share, which would represent a year-over-year decline of 5.41%. Meanwhile, our latest consensus estimate is calling for revenue of $9.58 billion, down 1.21% from the prior-year quarter.
SNY's full-year Zacks Consensus Estimates are calling for earnings of $3.37 per share and revenue of $42.23 billion. These results would represent year-over-year changes of +1.51% and +4.47%, respectively.
It is also important to note the recent changes to analyst estimates for SNY. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 2.42% lower. SNY currently has a Zacks Rank of #3 (Hold).
In terms of valuation, SNY is currently trading at a Forward P/E ratio of 15.09. For comparison, its industry has an average Forward P/E of 14.63, which means SNY is trading at a premium to the group.
We can also see that SNY currently has a PEG ratio of 2.08. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Large Cap Pharmaceuticals was holding an average PEG ratio of 2.08 at yesterday's closing price.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 29, putting it in the top 12% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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