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Teva Pharmaceutical Industries Ltd. (TEVA) Gains As Market Dips: What You Should Know

Zacks Equity Research

Teva Pharmaceutical Industries Ltd. (TEVA) closed at $7.91 in the latest trading session, marking a +0.64% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.26%. At the same time, the Dow lost 0.09%, and the tech-heavy Nasdaq lost 0.24%.

Heading into today, shares of the company had lost 15.67% over the past month, lagging the Medical sector's loss of 2.01% and the S&P 500's gain of 2.87% in that time.

Investors will be hoping for strength from TEVA as it approaches its next earnings release, which is expected to be August 7, 2019. On that day, TEVA is projected to report earnings of $0.58 per share, which would represent a year-over-year decline of 25.64%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.26 billion, down 9.28% from the year-ago period.

TEVA's full-year Zacks Consensus Estimates are calling for earnings of $2.37 per share and revenue of $17.14 billion. These results would represent year-over-year changes of -18.84% and -9.08%, respectively.

It is also important to note the recent changes to analyst estimates for TEVA. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.35% lower. TEVA is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that TEVA has a Forward P/E ratio of 3.31 right now. Its industry sports an average Forward P/E of 7.72, so we one might conclude that TEVA is trading at a discount comparatively.

Also, we should mention that TEVA has a PEG ratio of 0.78. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. TEVA's industry had an average PEG ratio of 0.93 as of yesterday's close.

The Medical - Generic Drugs industry is part of the Medical sector. This group has a Zacks Industry Rank of 62, putting it in the top 25% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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