Teva Pharmaceutical Industries Ltd. (TEVA) closed at $8.04 in the latest trading session, marking a +1.26% move from the prior day. This move outpaced the S&P 500's daily loss of 0.31%. Elsewhere, the Dow lost 0.52%, while the tech-heavy Nasdaq lost 0.28%.
Heading into today, shares of the company had gained 28.9% over the past month, outpacing the Medical sector's loss of 0.98% and the S&P 500's gain of 2.92% in that time.
TEVA will be looking to display strength as it nears its next earnings release. In that report, analysts expect TEVA to post earnings of $0.57 per share. This would mark a year-over-year decline of 11.33%. Meanwhile, our latest consensus estimate is calling for revenue of $4.23 billion, down 6.5% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.25 per share and revenue of $17.18 billion, which would represent changes of -19.58% and -8.89%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for TEVA. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection has moved 0.04% lower. TEVA is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, TEVA is holding a Forward P/E ratio of 3.35. This represents a discount compared to its industry's average Forward P/E of 7.72.
It is also worth noting that TEVA currently has a PEG ratio of 0.79. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Medical - Generic Drugs stocks are, on average, holding a PEG ratio of 0.88 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 61, putting it in the top 24% 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.
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