Why Teva Pharmaceuticals (TEVA) Stock Is Lower Today

NEW YORK (TheStreet) -- Shares of Teva Pharmaceuticals (TEVA) are down -1.50% to $49.77 after a U.S. district court in Washington, DC dismissed a case by the company against the FDA, part of their legal battle aimed at stopping generic versions of its Copaxone drug for multiple sclerosis, Reuters reports.

The case was dismissed as being premature because the FDA had not yet approved or rejected the applications for generic forms of the drug, according to Teva.

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TheStreet Ratings team rates TEVA PHARMACEUTICALS as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate TEVA PHARMACEUTICALS (TEVA) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, growth in earnings per share, increase in net income and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • TEVA's revenue growth has slightly outpaced the industry average of 5.2%. 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.
  • 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 30.14% 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 ($4.74 versus $1.50).
  • The net income growth from the same quarter one year ago has exceeded that of the Pharmaceuticals industry average, but is less than that of the S&P 500. The net income increased by 18.1% when compared to the same quarter one year prior, going from $630.00 million to $744.00 million.
  • The gross profit margin for TEVA PHARMACEUTICALS is rather high; currently it is at 54.29%. Regardless of TEVA's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 14.87% trails the industry average.
  • You can view the full analysis from the report here: TEVA Ratings Report

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