Back to top

Image: Bigstock

Should Value Investors Buy Teva Pharmaceutical Industries Ltd. (TEVA) Stock?

Read MoreHide Full Article

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company to watch right now is Teva Pharmaceutical Industries Ltd. (TEVA - Free Report) . TEVA is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 6.06. This compares to its industry's average Forward P/E of 8.09. Over the past year, TEVA's Forward P/E has been as high as 9.03 and as low as 4.91, with a median of 7.65.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. TEVA has a P/S ratio of 0.84. This compares to its industry's average P/S of 2.04.

These are only a few of the key metrics included in Teva Pharmaceutical Industries Ltd.'s strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, TEVA looks like an impressive value stock at the moment.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Teva Pharmaceutical Industries Ltd. (TEVA) - free report >>

Published in