Teva Pharmaceutical Industries Ltd. (TEVA - Free Report) closed the most recent trading day at $7.90, moving +0.77% from the previous trading session. This move lagged the S&P 500's daily gain of 6.24%. Meanwhile, the Dow gained 6.38%, and the Nasdaq, a tech-heavy index, added 5.6%.
Prior to today's trading, shares of the company had lost 39.79% over the past month. This has lagged the Medical sector's loss of 16.27% and the S&P 500's loss of 21.22% in that time.
Investors will be hoping for strength from TEVA as it approaches its next earnings release. On that day, TEVA is projected to report earnings of $0.58 per share, which would represent a year-over-year decline of 3.33%. Meanwhile, our latest consensus estimate is calling for revenue of $4.13 billion, down 3.82% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.45 per share and revenue of $16.77 billion, which would represent changes of +2.08% and -3.45%, respectively, from the prior year.
It is also important to note the 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, 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. TEVA currently has a Zacks Rank of #3 (Hold).
In terms of valuation, TEVA is currently trading at a Forward P/E ratio of 3.19. This represents a discount compared to its industry's average Forward P/E of 6.35.
Also, we should mention that TEVA has a PEG ratio of 0.67. 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 was holding an average PEG ratio of 0.67 at yesterday's closing price.
The Medical - Generic Drugs industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 73, which puts it in the top 29% 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.
To follow TEVA in the coming trading sessions, be sure to utilize Zacks.com.