Trade-Ideas: Teva Pharmaceutical Industries (TEVA) Is Today's Momo Momentum Stock
- TEVA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $189.9 million.
- TEVA has a PE ratio of 34.7.
- TEVA is currently in the upper 30% of its 1-year range.
- TEVA is in the upper 25% of its 20-day range.
- TEVA is in the upper 35% of its 5-day range.
- TEVA is currently trading above yesterday's high.
- TEVA has experienced a gap between today's open and yesterday's close of 1.1%.
'Momo Momentum' stocks are valuable stocks to watch for a variety of reasons including historical back testing and price action. Market technicians refer to such stocks as being in a mark-up phase before a possible distribution period and price decline. Technical analysts and traders frequently find that the factors referenced above tend to create a temporary burst of strong wind in a stock's sail. Nevertheless, all successful traders must excel at maximizing gains while keeping losses to an absolute minimum. For that reason, the holding period on momo momentum stocks must always be a primary consideration, and this part of the puzzle is ultimately at the discretion of each individual's risk tolerance and portfolio risk management skills. EXCLUSIVE OFFER: Get the inside scoop on opportunities in TEVA with the Ticky from Trade-Ideas. See the FREE profile for TEVA NOW at Trade-Ideas More details on TEVA: Teva Pharmaceutical Industries Limited, together with its subsidiaries, develops, manufactures, sells, and distributes pharmaceutical products worldwide. The company offers generic pharmaceutical products; and basic chemicals, as well as specialized product families. The stock currently has a dividend yield of 2.2%. TEVA has a PE ratio of 34.7. Currently there are 9 analysts that rate Teva Pharmaceutical Industries a buy, 1 analyst rates it a sell, and 9 rate it a hold. The average volume for Teva Pharmaceutical Industries has been 5.5 million shares per day over the past 30 days. Teva has a market cap of $44.0 billion and is part of the health care sector and drugs industry. Shares are up 28.4% year-to-date as of the close of trading on Tuesday. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. TheStreetRatings.com Analysis: TheStreet Quant Ratings rates Teva Pharmaceutical Industries as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins, largely solid financial position with reasonable debt levels by most measures, solid stock price performance and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Highlights from the ratings report include:
- TEVA's revenue growth has slightly outpaced the industry average of 5.3%. Since the same quarter one year prior, revenues slightly increased by 2.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The gross profit margin for TEVA PHARMACEUTICALS is rather high; currently it is at 62.37%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 14.87% trails the industry average.
- The current debt-to-equity ratio, 0.51, is low and is below the industry average, implying that there has been successful management of debt levels. Despite the fact that TEVA's debt-to-equity ratio is low, the quick ratio, which is currently 0.54, displays a potential problem in covering short-term cash needs.
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 32.59% over the past year, a rise that has exceeded that of the S&P 500 Index. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- TEVA PHARMACEUTICALS has improved earnings per share by 17.6% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, TEVA PHARMACEUTICALS reported lower earnings of $1.50 versus $2.24 in the prior year. This year, the market expects an improvement in earnings ($4.78 versus $1.50).
- You can view the full Teva Pharmaceutical Industries Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
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