Teva Pharmaceutical Industries Ltd. (TEVA - Free Report) closed the most recent trading day at $8.62, moving -1.03% from the previous trading session. This change lagged the S&P 500's 0.41% gain on the day. Meanwhile, the Dow gained 0.39%, and the Nasdaq, a tech-heavy index, added 0.57%.
Prior to today's trading, shares of the company had lost 23.86% over the past month. This has lagged the Medical sector's gain of 2.28% and the S&P 500's gain of 0.1% in that time.
Investors will be hoping for strength from TEVA as it approaches its next earnings release. The company is expected to report EPS of $0.58, down 25.64% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $4.27 billion, down 9.15% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.37 per share and revenue of $17.18 billion, which would represent changes of -18.84% and -8.87%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for TEVA. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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. Within the past 30 days, our consensus EPS projection remained stagnant. TEVA is currently a Zacks Rank #3 (Hold).
In terms of valuation, TEVA is currently trading at a Forward P/E ratio of 3.67. For comparison, its industry has an average Forward P/E of 7.02, which means TEVA is trading at a discount to the group.
Investors should also note that TEVA has a PEG ratio of 1 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 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 165, putting it in the bottom 36% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.