Stocks at the top of FEZ
On Friday, December 11, 2015, the stocks at the top of the SPDR Euro STOXX 50 ETF (FEZ) were Industria De Diseno, Sanofi (SNY), UniCredit (UNCFF), ING Groep (ING), and L’Oréal (LRLCY). These stocks provided minimal negative returns compared to other stocks returning -0.21%, -0.44%, -0.87%, -1%, and -1.2%, respectively. The notable point of the day was that almost all the stocks yielded negative returns.
Things turned around for Sanofi
France-based drugmaker Sanofi applied for regulatory approval of the world’s first dengue vaccine in India. On Wednesday, December 9, 2015, it got regulatory approval for the vaccine in Mexico. However, it still hasn’t received regulatory approval in Mexico for children younger than nine years old.
In India, Sanofi is targeting to reach 90,000 people who were affected with the dengue fever this year. The company hasn’t set a price yet for the vaccine.
Sanofi is currently trading at 76.4 euros. Its 52-week high is 101.1 euros, and its 52-week low is 69.8 euros. Its current price-to-earnings ratio is 20.59x, and the current price-to-book-value ratio is 1.76x. The stock is currently trading at 13%, 10%, and 6% below its 100-day, 50-day, and 20-day moving averages, respectively.
Analysts’ estimates indicate upsides of 22% for Sanofi from its current levels as of December 11, 2015, over the next 12-month period. On Wednesday, December 9, 2015, Goldman Sachs (GS) set a target price of 80 euros and provided a “neutral” rating for Sanofi. The above graph compares Sanofi’s performance with its peer Bayer since November 2015.
Bayer is currently trading at 110.9 euros. Its 52-week high is 146.5 euros, and its 52-week low is 106.8 euros. Bayer’s current price-to-earnings ratio is 25.15x. Its current price-to-book-value ratio is 4.07x. Bayer fell 3.1% on December 11, 2015. The Health Care Select Sector SPDR ETF (XLV) also fell 1.5% on the same day.
Currently, Bayer stock is trading at 8%, 5%, and 9% below its 100-day, 50-day, and 20-day moving averages, respectively. Analysts’ estimates indicate upsides of 25% for Bayer from its current levels as of December 11, 2015, over the next 12-month period.
In the next part of this series, we’ll analyze the performance of FEZ’s bottom stocks on December 11, 2015.