Teva Pharmaceutical Industries Ltd. (TEVA) closed at $9.54 in the latest trading session, marking a +0.85% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.16%. Meanwhile, the Dow lost 0.12%, and the Nasdaq, a tech-heavy index, lost 0.33%.
Coming into today, shares of the company had gained 6.53% in the past month. In that same time, the Medical sector lost 8.16%, while the S&P 500 lost 10.5%.
TEVA will be looking to display strength as it nears its next earnings release. In that report, analysts expect TEVA to post earnings of $0.58 per share. This would mark a year-over-year decline of 3.33%. Meanwhile, our latest consensus estimate is calling for revenue of $4.13 billion, down 3.84% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.44 per share and revenue of $16.67 billion. These totals would mark changes of +1.67% and -3.97%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for TEVA. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. The Zacks Consensus EPS estimate has moved 0.97% lower within the past month. TEVA is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, TEVA is holding a Forward P/E ratio of 3.88. Its industry sports an average Forward P/E of 5.84, so we one might conclude that TEVA is trading at a discount comparatively.
Investors should also note that TEVA has a PEG ratio of 0.82 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. Medical - Generic Drugs stocks are, on average, holding a PEG ratio of 0.82 based on yesterday's closing prices.
The Medical - Generic Drugs industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 32, which puts it in the top 13% 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.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Teva Pharmaceutical Industries Ltd. (TEVA) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research