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Strength Seen in Teva Pharmaceutical Industries (TEVA): Can Its 26.5% Jump Turn into More Strength?
Teva Pharmaceutical Industries Ltd. (TEVA - Free Report) shares rallied 26.5% in the last trading session to close at $20.88. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 0.1% gain over the past four weeks.
This jump in share price came after management reported positive results from a mid-stage study on its experimental anti-TL1A therapy, duvakitug, in Ulcerative Colitis and Crohn's disease, which are the two main types of inflammatory bowel disease. The study achieved its primary endpoints for both diseases. The drug is being developed in collaboration with Sanofi.
This company is expected to post quarterly earnings of $0.69 per share in its upcoming report, which represents a year-over-year change of -31%. Revenues are expected to be $4.1 billion, down 8% 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, the consensus EPS estimate for the quarter has been revised 0.9% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. 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 >>>>
Teva Pharmaceutical Industries is a member of the Zacks Medical - Generic Drugs industry. One other stock in the same industry, Doctor Reddy's (RDY - Free Report) , finished the last trading session 1.4% lower at $14.48. RDY has returned 4.2% over the past month.
Doctor Reddy's' consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.20. Compared to the company's year-ago EPS, this represents no change. Doctor Reddy's currently boasts a Zacks Rank of #2 (Buy).