Teva Pharmaceutical Industries Ltd. (TEVA) Moves 7.5% Higher: Will This Strength Last?
Teva Pharmaceutical Industries Ltd. (TEVA) shares ended the last trading session 7.5% higher at $11.53. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 4.5% gain over the past four weeks.
Teva's shares rose on the upcoming hearing on the New York state opioid litigation. Teva, along with some other companies, is being held liable for fueling nationwide opioid epidemic. The hearing could be an important catalyst for the stock as it can result in a global settlement and bring an end to the litigation.
This company is expected to post quarterly earnings of $0.58 per share in its upcoming report, which represents a year-over-year change of +5.5%. Revenues are expected to be $4.03 billion, up 4.3% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Teva Pharmaceutical Industries Ltd., the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on TEVA going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank 3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
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