Teva Pharmaceutical Industries Ltd. (TEVA) Dips More Than Broader Markets: What You Should Know
Teva Pharmaceutical Industries Ltd. (TEVA) closed the most recent trading day at $8.11, moving -1.1% from the previous trading session. This change lagged the S&P 500's 0.65% loss on the day. Elsewhere, the Dow lost 0.42%, while the tech-heavy Nasdaq lost 0.46%.
Coming into today, shares of the company had lost 1.91% in the past month. In that same time, the Medical sector lost 0.52%, while the S&P 500 gained 4.11%.
Investors will be hoping for strength from TEVA as it approaches its next earnings release, which is expected to be August 7, 2019. On that day, TEVA is projected to report earnings of $0.58 per share, which would represent a year-over-year decline of 25.64%. 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 $2.38 per share and revenue of $17.16 billion, which would represent changes of -18.49% and -9.01%, respectively, from the prior year.
Any recent changes to analyst estimates for TEVA should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. TEVA is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that TEVA has a Forward P/E ratio of 3.45 right now. This valuation marks a discount compared to its industry's average Forward P/E of 6.74.
We can also see that TEVA currently has a PEG ratio of 0.94. 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. 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 148, putting it in the bottom 43% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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