Teva Pharmaceutical Industries Ltd. (TEVA) Gains As Market Dips: What You Should Know
Teva Pharmaceutical Industries Ltd. (TEVA) closed the most recent trading day at $8.89, moving +0.91% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.12%. Elsewhere, the Dow lost 0.04%, while the tech-heavy Nasdaq added 0.32%.
Prior to today's trading, shares of the company had lost 7.46% over the past month. This has lagged the Medical sector's gain of 3.52% and the S&P 500's gain of 3.31% in that time.
TEVA will be looking to display strength as it nears its next earnings release. 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 $4.27 billion, down 9.15% from the year-ago period.
TEVA's full-year Zacks Consensus Estimates are calling for earnings of $2.38 per share and revenue of $17.18 billion. These results would represent year-over-year changes of -18.49% and -8.87%, respectively.
Investors might also notice recent changes to analyst estimates for TEVA. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.62% higher. TEVA currently has a Zacks Rank of #3 (Hold).
Digging into valuation, TEVA currently has a Forward P/E ratio of 3.7. For comparison, its industry has an average Forward P/E of 7.01, which means TEVA is trading at a discount to the group.
Investors should also note that TEVA has a PEG ratio of 1.01 right now. 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. The Medical - Generic Drugs industry currently had an average PEG ratio of 1.01 as of yesterday's close.
The Medical - Generic Drugs industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 147, which puts it in the bottom 43% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow TEVA in the coming trading sessions, be sure to utilize Zacks.com.
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