Teva Pharmaceutical Industries Ltd. (TEVA) closed at $9.54 in the latest trading session, marking a +0.85% move from the prior day. The stock outpaced the S&P 500’s daily loss of 0.16%. Meanwhile, the Dow lost 0.12%, and the Nasdaq, a tech-heavy index, lost 0.33%.
Coming into today, shares of the company had gained 6.53% in the past month. In that same time, the Medical sector lost 8.16%, while the S&P 500 lost 10.5%.
TEVA will be looking to display strength as it nears its next earnings release. In that report, analysts expect TEVA to post earnings of $0.58 per share. This would mark a year-over-year decline of 3.33%. Meanwhile, our latest consensus estimate is calling for revenue of $4.13 billion, down 3.84% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.44 per share and revenue of $16.67 billion. These totals would mark changes of +1.67% and -3.97%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for TEVA. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 0.97% lower within the past month. TEVA is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, TEVA is holding a Forward P/E ratio of 3.88. Its industry sports an average Forward P/E of 5.84, so we one might conclude that TEVA is trading at a discount comparatively.