Is Teva Pharmaceutical Industries (TEVA) a Great Value Stock Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on is Teva Pharmaceutical Industries (TEVA). TEVA is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 4.08 right now. For comparison, its industry sports an average P/E of 8.82. TEVA's Forward P/E has been as high as 4.55 and as low as 2.72, with a median of 3.45, all within the past year.
Another notable valuation metric for TEVA is its P/B ratio of 1.19. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. TEVA's current P/B looks attractive when compared to its industry's average P/B of 1.55. Over the past year, TEVA's P/B has been as high as 1.33 and as low as 0.72, with a median of 0.98.
These are just a handful of the figures considered in Teva Pharmaceutical Industries's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that TEVA is an impressive value stock right now.
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Teva Pharmaceutical Industries Ltd. (TEVA) : Free Stock Analysis Report
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