Teva Pharmaceutical Industries Ltd. (TEVA - Free Report) closed at $8.12 in the latest trading session, marking a -0.73% move from the prior day. This change lagged the S&P 500's 0.95% gain on the day. Meanwhile, the Dow gained 0.94%, and the Nasdaq, a tech-heavy index, added 0.8%.
Prior to today's trading, shares of the company had lost 29.12% over the past month. This has lagged the Medical sector's gain of 5.28% and the S&P 500's gain of 2.47% in that time.
TEVA will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.58, down 25.64% from the prior-year quarter. 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 $2.37 per share and revenue of $17.18 billion. These results would represent year-over-year changes of -18.84% and -8.87%, respectively.
Investors should also note any recent changes to analyst estimates for TEVA. These recent revisions tend to reflect the evolving nature of short-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. Over the past month, the Zacks Consensus EPS estimate 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 3.45. For comparison, its industry has an average Forward P/E of 6.95, which means TEVA is trading at a discount to the group.
It is also worth noting that TEVA currently 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. Medical - Generic Drugs stocks are, on average, holding a PEG ratio of 0.94 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 151, putting it in the bottom 42% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.