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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 the most recent trading day at $10.84, moving +1.12% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.52%. Elsewhere, the Dow lost 0.13%, while the tech-heavy Nasdaq lost 1.4%.

Heading into today, shares of the company had gained 25.97% over the past month, outpacing the Medical sector's gain of 17.7% and the S&P 500's gain of 13.35% in that time.

Investors will be hoping for strength from TEVA as it approaches its next earnings release, which is expected to be May 7, 2020. The company is expected to report EPS of $0.59, down 1.67% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $4.14 billion, down 3.55% from the prior-year quarter.

TEVA's full-year Zacks Consensus Estimates are calling for earnings of $2.40 per share and revenue of $16.49 billion. These results would represent year-over-year changes of 0% and -5.06%, respectively.

Investors might also notice recent changes to analyst estimates for TEVA. Recent revisions tend to reflect the latest near-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. 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.

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. Over the past month, the Zacks Consensus EPS estimate has moved 1.75% lower. TEVA currently has a Zacks Rank of #3 (Hold).

Digging into valuation, TEVA currently has a Forward P/E ratio of 4.46. This valuation marks a discount compared to its industry's average Forward P/E of 6.95.

Also, we should mention that TEVA has a PEG ratio of 0.94. 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. TEVA's industry had an average PEG ratio of 0.94 as of yesterday's close.

The Medical - Generic Drugs industry is part of the Medical sector. This group has a Zacks Industry Rank of 20, putting it in the top 8% 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.


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