Sanofi Trades Below 50 & 200-Day Moving Averages: Time to Buy the Dip?

Sanofi’s SNY stock has been trading below its 200-day and 50-day moving averages since early June. On June 23, the stock’s closing price of $48.18 was below its 50-day moving average of $50.32 and the 200-day moving average of $50.71.When a stock's price is below its 200-day moving average, it can be interpreted as a potential sign of weakness or a bearish trend in the stock. With Sanofi’s stock price going below its 50-day and 200-day moving averages, investors holding the stock are confused about whether they should consider selling the stock.Let’s understand the company’s strengths and weaknesses to better analyze how to play Sanofi stock amid this scenario.Dupixent: A Key Top-Line Driver for SNYSanofi and Regeneron’s REGN immunology drug, Dupixent, has become the key top-line driver as it enjoys strong demand across all approved indications and geographies. Dupixent is now approved in several countries, including the United States and the EU, for six type II inflammatory diseases, namely severe chronic rhinosinusitis with nasal polyposis, severe asthma, moderate-to-severe atopic dermatitis, eosinophilic esophagitis, prurigo nodularis and chronic obstructive pulmonary disease (COPD). Sanofi/Regeneron’s Dupixent was approved for its seventh indication, chronic spontaneous urticaria, in the United States in April 2025 and for its eighth indication, bullous pemphigoid, in June.Dupixent’s strong sales growth is being driven by demand across all geographies, newly approved indications and demographics. New uses, increased penetration in approved indications and further geographic expansion are expected to drive Dupixent’s sales in future quarters. Sanofi expects Dupixent to achieve around €22 billion in sales in 2030.SNY Boasts a Strong Vaccine SegmentSanofi possesses one of the world’s leading vaccine operations, with total annual sales of more than €5 billion in the past five years. Its Vaccines unit has delivered mid-to-high-single-digit sales growth since 2018. In 2024, Sanofi’s Vaccines segment recorded sales growth of 13.5% at CER, exceeding expectations of growing at a high single-digit range due to the successful rollout of Beyfortus, which reached €1.7 billion in sales. In the first quarter of 2025, total vaccine sales increased 11.4%. Sanofi continues to expand its vaccine business further. Some vaccine candidates that are in phase III development include a 21-valent pneumococcal conjugate vaccine and a next-generation rabies vaccine. Sanofi expects annual net sales to be more than €10 billion from its Vaccines unit by 2030, backed by its innovation efforts.SNY’s New Products & Strong Pipeline Can Drive Long-Term GrowthSanofi’s new products, like novel recombinant factor VIII therapy, Altuviiio, respiratory syncytial virus (RSV) antibody, Beyfortus (in partnership with AstraZeneca [AZN]), Pompe disease therapy, Nexviazyme, and chronic graft-versus-host disease drug, Rezurock, are contributing to top-line growth. Revenues from these products are offsetting the impact of generic competition on Aubagio's sales.Sanofi is investing in these launches to optimize their success. Beyfortus achieved blockbuster sales in its first full year of sales in 2024. Altuviiio is expected to achieve blockbuster sales in 2025.Sanofi has a strong immunology and neuro-inflammation pipeline, which includes 12 potential blockbuster assets in phase III development, including amlitelimab, frexalimab and tolebrutinib.A key new product, Qfitlia (fitusiran), was approved by the FDA in March 2025 to prevent or reduce the frequency of bleeding episodes in patients with hemophilia A and B. FDA decisions on tolebrutinib for non-relapsing secondary progressive multiple sclerosis and rilzabrutinib for immune thrombocytopenia are expected this year.SNY’s Several HeadwindsGeneric versions of the key drug, Aubagio, were launched in the United States in March 2023 and in Europe at the end of September 2023, which significantly eroded the drug’s sales in 2023 and 2024. Aubagio sales are expected to continue to decline in 2025.Sales of Sanofi’s influenza vaccines, which represented 30.8% of vaccines net sales, declined 1.4% in 2024 due to rising competitive and pricing pressure. The challenges are expected to continue. In the first quarter of 2025, influenza vaccine sales declined 1.4%. Sanofi believes that the influenza market is likely to have several new competitive entrants, both from standalone flu mRNA and COVID-flu combinations. In addition, intense pricing pressure and lower vaccine coverage can hurt sales of influenza vaccines in future quarters.Competition for Beyfortus, which represented 20.3% of vaccine sales in 2024, may increase with the launch of Merck’s MRK new monoclonal antibody for RSV, Enflonsia, which was approved by the FDA earlier this month.SNY’s Price, Valuation & Estimate MovementSanofi’s stock has risen 3.1% year to date against a decrease of 1.2% for the industry. The stock has also outperformed the sector and the S&P 500, as seen in the chart below.SNY Stock Outperforms Industry, Sector and S&P 500Image Source: Zacks Investment ResearchFrom a valuation standpoint, Sanofi appears attractive relative to the industry. Going by the price/earnings ratio, the company’s shares currently trade at 10.15 forward earnings, lower than 14.81 for the industry. The stock also trades lower than its 5-year mean of 11.68. The stock is also much cheaper than other large drugmakers like Novo Nordisk, AstraZeneca, J&J, AbbVie and Lilly.SNY Stock ValuationImage Source: Zacks Investment ResearchThe Zacks Consensus Estimate for 2025 earnings has risen from $4.43 per share to $4.56 per share over the past 60 days. For 2026, earnings estimates have risen from $4.86 per share to $4.94 per share over the same timeframe. SNY Estimate MovementImage Source: Zacks Investment ResearchStay Invested in SNY StockSanofi faces its share of headwinds, like generic erosion of key drug Aubagio in all key markets and lower sales from mature products, which are hurting sales. Other headwinds include weak sales of influenza vaccines and regular negative pipeline developments.However, Sanofi has increased R&D investments and is achieving significant progress with its pipeline. It has also been active on the M&A front. In less than two months, it announced proposed acquisitions of Blueprint Medicines and Vigil Neuroscience. While the BPMC deal will expand Sanofi’s presence in rare immunological diseases, the VIGL deal will boost Sanofi’s neurology pipeline.In 2025, Sanofi expects sales to rise by a mid-to-high single-digit percentage at CER. Earnings are expected to rebound strongly, with an expectation of a low double-digit percentage growth at CER (before stock buyback) in 2025 versus 4.1% in 2024.Sanofi’s price appreciation, rising estimates, reasonable valuation, improving top-line performance, potential contributions from new product launches and positive pipeline progress are good enough reasons for those who own this Zacks Rank #3 (Hold) stock to stay invested despite the stock's price going below its 50 and 200-day moving averages.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Regeneron Pharmaceuticals, Inc. (REGN): Free Stock Analysis Report Sanofi (SNY): Free Stock Analysis Report AstraZeneca PLC (AZN): Free Stock Analysis Report Merck & Co., Inc. (MRK): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks