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

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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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One company value investors might notice 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 holds a P/E ratio of 5.12, while its industry has an average P/E of 9.09. Over the past year, TEVA's Forward P/E has been as high as 5.35 and as low as 2.50, with a median of 3.74.

We also note that TEVA holds a PEG ratio of 1.09. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. TEVA's industry currently sports an average PEG of 1.13. Over the last 12 months, TEVA's PEG has been as high as 1.47 and as low as 0.56, with a median of 0.89.

Another valuation metric that we should highlight is TEVA's P/B ratio of 0.97. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 1.32. Within the past 52 weeks, TEVA's P/B has been as high as 0.98 and as low as 0.44, with a median of 0.66.

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.


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