Is Teva Stock A Good Investment? – (TEVA)
Why did Teva have sell-off’s?
Teva is a pharmaceuticals company that just had the worst week this year after two analysts expressed concern on the company. Although, that did not matter to Goldman Sachs, as they are doubling down on Teva Stock. Goldman Sachs added Teva to its Conviction Buy list, mentioning various positive ventures in the short-term future of the company.
The company specialises in the development of generic medicines and specialty medicines. These include sterile products, hormones, high-potency drugs and other ointments/creams.
Last week, Teva shares dropped nearly 13%, attributed to rival treatments going to market. Although, the approval of Eli Lilly’s migrane treatment was announced to be hitting the market came months ago. So many analysts are curious why the market has taken so long to respond to the news.
Shares of Teva Pharmaceuticals have sold off in recent weeks. The company’s decline last week offset all gains that the stock had experienced in the week before that. Recent sell-off’s have caused the Teva stock price to drop.
Teva Stock Forecast
Last Friday, TEVA stock was the most active company on Wall Street. On Friday, Teva stock price jumped by 1.41% to $21.54.
The next 12 months, analysts forecast to see highs of $30.00 and lows of $13 for TEVA.
The company will announce an earnings per share metric of $0.55 for this fiscal quarter, says Zacks Research. Eight analysts have given an estimate of Teva earnings, ranging from $0.49 to $0.65. The company reported earnings of $1.00 per share this quarter last year. The decrease in earnings per share may not be a promising sign for investors. This decline is earnings per share represents a negative year over year growth rate of 45%.
Zacks estimates the full year earnings per share will hit $2.78, EPS estimates from analysts range between $2.69 and $2.93.
Teva is on the right trajectory to exceed this year’s sales target pf $1.5 billion. One of the company’s new drugs, Ajovy has recently been approved for market, putting the company in a strong position to generate more revenue.
As with all pharmaceutical companies, Teva stock price is fluctuates constantly.
I currently give TEVA stock a “HOLD” rating.
Teva Future Growth
The future of Teva Pharmaceuticals is uncertain, the question many investors are asking is wether Teva can bring its growth rates back up? Some analysts are doubting that Teva can increase growth rates above 10% in the next two years.
Many analysts do not expect Teva to increase revenue at all in the next four years, meaning that Goldman Sachs may be on their own in this debate.