In the latest trading session, Teva Pharmaceutical Industries Ltd. (TEVA) closed at $11.25, marking a -0.71% move from the previous day. This move lagged the S&P 500's daily gain of 1.31%. At the same time, the Dow added 1.9%, and the tech-heavy Nasdaq gained 1.01%.
TEVA will be looking to display strength as it nears its next earnings release. On that day, TEVA is projected to report earnings of $0.52 per share, which would represent a year-over-year decline of 13.33%. Our most recent consensus estimate is calling for quarterly revenue of $3.90 billion, down 10.17% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.47 per share and revenue of $16.69 billion, which would represent changes of +2.92% and -3.9%, respectively, from the prior year.
Any recent changes to analyst estimates for TEVA should also be noted by investors. Recent revisions tend to reflect the latest 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. 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. Within the past 30 days, our consensus EPS projection has moved 2.55% higher. TEVA is currently a Zacks Rank #3 (Hold).
In terms of valuation, TEVA is currently trading at a Forward P/E ratio of 4.59. Its industry sports an average Forward P/E of 6.77, so we one might conclude that TEVA is trading at a discount comparatively.
Meanwhile, TEVA's PEG ratio is currently 0.78. 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 0.6 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 25, which puts it in the top 10% 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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