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Teva Pharmaceutical Industries Ltd. (TEVA) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research

In the latest trading session, Teva Pharmaceutical Industries Ltd. (TEVA) closed at $9.97, marking a +1.73% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.45%. Elsewhere, the Dow gained 0.49%, while the tech-heavy Nasdaq added 0.67%.

Prior to today's trading, shares of the company had lost 5.95% over the past month. This has lagged the Medical sector's gain of 5.52% and the S&P 500's gain of 2.44% in that time.

Wall Street will be looking for positivity from TEVA as it approaches its next earnings report date. In that report, analysts expect TEVA to post earnings of $0.63 per share. This would mark year-over-year growth of 18.87%. Meanwhile, our latest consensus estimate is calling for revenue of $4.38 billion, down 4% from the prior-year quarter.

TEVA's full-year Zacks Consensus Estimates are calling for earnings of $2.39 per share and revenue of $17.28 billion. These results would represent year-over-year changes of -18.15% and -8.36%, respectively.

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. 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. 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 remained stagnant within the past month. TEVA currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that TEVA has a Forward P/E ratio of 4.1 right now. For comparison, its industry has an average Forward P/E of 8.57, which means TEVA is trading at a discount to the group.

Meanwhile, TEVA's PEG ratio is currently 0.99. 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. Medical - Generic Drugs stocks are, on average, holding a PEG ratio of 0.92 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 159, putting it in the bottom 38% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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