2024-03-25 02:07:51 ET
Summary
- Sanofi has underperformed the U.S. stock market lately but now offers one of the smartest growth-at-a-reasonable-price setups in Big Pharma.
- Sanofi is best known for its patented drug Dupixent and numerous vaccines manufactured for global use, which generate a significant portion of its revenue.
- The company has a stable dividend proposition, strong balance sheet, and better-than-average potential for earnings growth in the future.
- Through technical trading analysis, hints of an important turn in share-buying interest are starting to appear.
The large-cap pharmaceutical group has lagged the stock market badly over the past year, relative to the S&P 500 jump of +25% or high-flying NASDAQ 100 index spike of +40%. So, I consider this sector a good hunting ground for bargains. Since late summer, I have written bullish views on Pfizer ( PFE ) here and Bristol-Myers Squibb ( BMY ) here , but neither has been able to get out their funk, as investors fret over the negative long-term effects of Medicare negotiations on future pricing/profitability and major drug-patent expirations at each.
Another Big Pharma name with equally sound valuations, but the added support of earnings growth kickers approaching in 2025, is Sanofi ( SNY ), based in Paris with nearly 60% of sales taking place outside America. Each U.S. ADR creation represents 1/2 of an ordinary share for Sanofi ( SNYNF ) traded in Europe (generally priced in Euros)....
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Sanofi: My Top Pick In Big Pharma