We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Are Investors Undervaluing Sanofi (SNY) Right Now?
Read MoreHide Full Article
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
Sanofi (SNY - Free Report) is a stock many investors are watching right now. SNY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 12.34 right now. For comparison, its industry sports an average P/E of 19.50. SNY's Forward P/E has been as high as 12.68 and as low as 9.45, with a median of 11.30, all within the past year.
Investors will also notice that SNY has a PEG ratio of 1.48. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. SNY's industry currently sports an average PEG of 1.51. Over the last 12 months, SNY's PEG has been as high as 2.43 and as low as 1.20, with a median of 1.51.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. SNY has a P/S ratio of 3.01. This compares to its industry's average P/S of 4.77.
Finally, investors should note that SNY has a P/CF ratio of 15.48. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. SNY's current P/CF looks attractive when compared to its industry's average P/CF of 29.61. SNY's P/CF has been as high as 15.73 and as low as 8.04, with a median of 11.50, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Sanofi is likely undervalued currently. And when considering the strength of its earnings outlook, SNY sticks out at as one of the market's strongest value stocks.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Are Investors Undervaluing Sanofi (SNY) Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
Sanofi (SNY - Free Report) is a stock many investors are watching right now. SNY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 12.34 right now. For comparison, its industry sports an average P/E of 19.50. SNY's Forward P/E has been as high as 12.68 and as low as 9.45, with a median of 11.30, all within the past year.
Investors will also notice that SNY has a PEG ratio of 1.48. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. SNY's industry currently sports an average PEG of 1.51. Over the last 12 months, SNY's PEG has been as high as 2.43 and as low as 1.20, with a median of 1.51.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. SNY has a P/S ratio of 3.01. This compares to its industry's average P/S of 4.77.
Finally, investors should note that SNY has a P/CF ratio of 15.48. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. SNY's current P/CF looks attractive when compared to its industry's average P/CF of 29.61. SNY's P/CF has been as high as 15.73 and as low as 8.04, with a median of 11.50, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Sanofi is likely undervalued currently. And when considering the strength of its earnings outlook, SNY sticks out at as one of the market's strongest value stocks.