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

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Teva Pharmaceutical Industries Ltd. (TEVA - Free Report) closed at $9.43 in the latest trading session, marking a +1.18% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.29%. At the same time, the Dow added 0.26%, and the tech-heavy Nasdaq gained 0.22%.

Coming into today, shares of the company had gained 4.72% in the past month. In that same time, the Medical sector gained 7.46%, while the S&P 500 gained 7.86%.

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 $0.58 per share. This would mark a year-over-year decline of 25.64%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.27 billion, down 9.15% from the year-ago period.

TEVA's full-year Zacks Consensus Estimates are calling for earnings of $2.38 per share and revenue of $17.18 billion. These results would represent year-over-year changes of -18.49% and -8.87%, 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.

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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.62% higher within the past month. TEVA is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, TEVA is holding a Forward P/E ratio of 3.91. This valuation marks a discount compared to its industry's average Forward P/E of 6.74.

Investors should also note that TEVA has a PEG ratio of 1.06 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Medical - Generic Drugs stocks are, on average, holding a PEG ratio of 1.01 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 105, putting it in the top 42% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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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