Is Sanofi (SNY) a Smart Long-term Buy?

Generation PMCA recently released its Q3 2020 Investor Letter. The fund is managed by co-founders Randall Abramson and Herb Abramson. The investment firm serves its clients through two distinct areas: Portfolio Management and Capital Advisory services. You should check out Generation PMCA’s top 5 stock picks for investors to buy right now, which could be the biggest winners of this year.

In the said letter, Generation PMCA highlighted a few stocks and Sanofi (NASDAQ:SNY) is one of them. Sanofi (NASDAQ:SNY) is a pharmaceutical company. Year-to-date, Sanofi (NASDAQ:SNY) stock gained 0.6% and on November 20th it had a closing price of $50.52. Here is what Generation PMCA said:

“Sanofi, the French pharmaceutical company, is one of the largest drug companies globally. Last year Sanofi unveiled its “Play to Win” strategy, focused on reigniting growth, accelerating R&D, and improving profitability via operating efficiencies. A cornerstone of this new strategy is Dupixent, the first biologic approved to treat patients with atopic dermatitis whose disease cannot be controlled with a topical prescription. In Q3, Dupixent reached €1 billion in revenue. The company believes this drug can ultimately generate over €10 billion of annual revenue. Over the next 5 years we see Sanofi’s vaccine business growing mid-to-high digits on the launch of key influenza and PPH vaccines. As with Bristol Myers, the main risk relates to drug development. We are comfortable with its robust pipeline, with over 6 major therapeutics in development, and expect further growth from acquisitions. Our FMV estimate is €105 and the stock yields 3.7% while we wait for the share price to appreciate.”

In Q2 2020, the number of bullish hedge fund positions on Sanofi (NASDAQ:SNY) stock increased by about 60% from the previous quarter (see the chart here), so a number of other hedge fund managers believe in Sanofi’s growth potential. Our calculations showed that Sanofi (NASDAQ:SNY) isn’t ranked among the 30 most popular stocks among hedge funds.

The top 10 stocks among hedge funds returned 185% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 109 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

Video: Top 5 Stocks Among Hedge Funds

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Disclosure: None. This article is originally published at Insider Monkey.