Based on a sentiment analysis of news headline for Sanofi (SNY), it has become clear that the financial media and blogosphere are very excited about the outlook for the stock.
But is this extreme optimism a contrarian sell signal?
Importance on Extreme Investor Sentiment
Overwhelming consensus on a company can drive stock prices beyond their true fundamental value–understating or overstating inherent risks. These mispricings often present an opportunity for investors willing to go against conventional wisdom.
This is why we built Contextuall’s sentiment technology.
By detecting herd behavior for specific stocks and industries, our users can lower their risk, and perhaps even profit, from the one-sided groupthink of others.
The Stats: Evaluating Media Sentiment for Sanofi (SNY)
Based on an analysis of recent Sanofi (SNY) news articles, about 47.0% of headlines have been classified as Positive, higher than the Drug Manufacturing industry average of 27.13%.
7.0% of headlines have been classified as Negative (vs. an industry average of 15.33%).
Some might suggest that this extreme bullishness, especially when compared to industry averages, is a warning signal. Are investors too optimistic on the outlook for the stock?
Send us your comments and your thoughts on the outlook for the company.
Sentiment Trends: Charting Sentiment by Company
You can click on the chart to explore sentiment trends for other major companies, where each dot represents a clickable link to a company page (hover over any dot for summary info).
Positive sentiment percentages are plotted on the vertical axis, while negative sentiment percentages are plotted on the horizontal axis.
In other words, companies in the top left have more optimistic news sentiment than companies in the bottom right.
But is this extreme optimism a contrarian sell signal?
Importance on Extreme Investor Sentiment
Overwhelming consensus on a company can drive stock prices beyond their true fundamental value–understating or overstating inherent risks. These mispricings often present an opportunity for investors willing to go against conventional wisdom.
This is why we built Contextuall’s sentiment technology.
By detecting herd behavior for specific stocks and industries, our users can lower their risk, and perhaps even profit, from the one-sided groupthink of others.
The Stats: Evaluating Media Sentiment for Sanofi (SNY)
Based on an analysis of recent Sanofi (SNY) news articles, about 47.0% of headlines have been classified as Positive, higher than the Drug Manufacturing industry average of 27.13%.
7.0% of headlines have been classified as Negative (vs. an industry average of 15.33%).
Some might suggest that this extreme bullishness, especially when compared to industry averages, is a warning signal. Are investors too optimistic on the outlook for the stock?
Send us your comments and your thoughts on the outlook for the company.
Sentiment Trends: Charting Sentiment by Company
You can click on the chart to explore sentiment trends for other major companies, where each dot represents a clickable link to a company page (hover over any dot for summary info).
Positive sentiment percentages are plotted on the vertical axis, while negative sentiment percentages are plotted on the horizontal axis.
In other words, companies in the top left have more optimistic news sentiment than companies in the bottom right.