In the latest trading session, Teva Pharmaceutical Industries Ltd. (TEVA - Free Report) closed at $6.96, marking a -1.14% move from the previous day. This move lagged the S&P 500's daily gain of 0.62%. At the same time, the Dow added 0.61%, and the tech-heavy Nasdaq gained 1.05%.
Coming into today, shares of the company had gained 4.92% in the past month. In that same time, the Medical sector gained 1.66%, while the S&P 500 gained 3.85%.
TEVA will be looking to display strength as it nears its next earnings release. On that day, TEVA is projected to report earnings of $0.59 per share, which would represent a year-over-year decline of 13.24%. Our most recent consensus estimate is calling for quarterly revenue of $4.23 billion, down 6.5% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.38 per share and revenue of $17.18 billion. These totals would mark changes of -18.49% and -8.89%, respectively, from last 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate has moved 0.04% lower within the past month. TEVA is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, TEVA is currently trading at a Forward P/E ratio of 2.97. For comparison, its industry has an average Forward P/E of 7.65, which means TEVA is trading at a discount to the group.
It is also worth noting that TEVA currently has a PEG ratio of 0.7. 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. TEVA's industry had an average PEG ratio of 0.95 as of yesterday's close.
The Medical - Generic Drugs industry is part of the Medical sector. This group has a Zacks Industry Rank of 65, putting it in the top 26% 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.
To follow TEVA in the coming trading sessions, be sure to utilize Zacks.com.