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Teva Pharmaceutical Industries Ltd. (TEVA) Dips More Than Broader Markets: What You Should Know

Zacks Equity Research

In the latest trading session, Teva Pharmaceutical Industries Ltd. (TEVA) closed at $6.76, marking a -1.74% move from the previous day. This change lagged the S&P 500's 1.23% loss on the day. Elsewhere, the Dow lost 1.28%, while the tech-heavy Nasdaq lost 1.13%.

Heading into today, shares of the company had lost 0.29% over the past month, outpacing the Medical sector's loss of 1.2% and lagging the S&P 500's gain of 1.95% in that time.

Investors will be hoping for strength from TEVA as it approaches its next earnings release. The company is expected to report EPS of $0.59, down 13.24% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $4.23 billion, down 6.5% 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 -8.89%, respectively.

Investors should also note any recent changes to analyst estimates for TEVA. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. TEVA is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note TEVA's current valuation metrics, including its Forward P/E ratio of 2.9. This valuation marks a discount compared to its industry's average Forward P/E of 5.93.

Investors should also note that TEVA has a PEG ratio of 0.68 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Medical - Generic Drugs was holding an average PEG ratio of 0.9 at yesterday's closing price.

The Medical - Generic Drugs industry is part of the Medical sector. This group has a Zacks Industry Rank of 77, putting it in the top 31% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

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


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