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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 $6.98 in the latest trading session, marking a +0.14% move from the prior day. This change outpaced the S&P 500's 0.45% loss on the day. Elsewhere, the Dow lost 0.36%, while the tech-heavy Nasdaq lost 0.33%.

Heading into today, shares of the company had gained 1.16% over the past month, outpacing the Medical sector's loss of 1.24% and the S&P 500's gain of 0.59% in that time.

Investors will be hoping for strength from TEVA as it approaches its next earnings release. In that report, analysts expect TEVA to post earnings of $0.59 per share. This would mark a year-over-year decline of 13.24%. Meanwhile, our latest consensus estimate is calling for revenue of $4.23 billion, down 6.5% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.38 per share and revenue of $17.18 billion. These totals would mark changes of -18.49% and -8.89%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for TEVA. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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.

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 remained stagnant. TEVA is currently a Zacks Rank #3 (Hold).

Looking at its valuation, TEVA is holding a Forward P/E ratio of 2.93. This represents a discount compared to its industry's average Forward P/E of 6.1.

Investors should also note that TEVA has a PEG ratio of 0.69 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 0.89 based on yesterday's closing prices.

The Medical - Generic Drugs industry is part of the Medical sector. This group has a Zacks Industry Rank of 70, putting it in the top 28% 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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