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

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Teva Pharmaceutical Industries Ltd. (TEVA - Free Report) closed at $18.22 in the latest trading session, marking a -0.71% move from the prior day. This change lagged the S&P 500's daily gain of 0.07%. Elsewhere, the Dow lost 0.25%, while the tech-heavy Nasdaq added 0.14%.

Heading into today, shares of the company had gained 0.99% over the past month, lagging the Medical sector's gain of 3.85% and the S&P 500's gain of 6.28% in that time.

Wall Street will be looking for positivity from TEVA as it approaches its next earnings report date. This is expected to be February 13, 2019. The company is expected to report EPS of $0.56, down 39.78% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.54 billion, down 16.75% from the year-ago period.

Investors should also note any recent changes to analyst estimates for TEVA. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.61% lower. TEVA is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that TEVA has a Forward P/E ratio of 6.57 right now. For comparison, its industry has an average Forward P/E of 9.27, which means TEVA is trading at a discount to the group.

We can also see that TEVA currently has a PEG ratio of 5.59. 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. The Medical - Generic Drugs industry currently had an average PEG ratio of 1.18 as of yesterday's close.

The Medical - Generic Drugs industry is part of the Medical sector. This group has a Zacks Industry Rank of 166, putting it in the bottom 35% 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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