Teva is a stock that has been around for a while falling off peoples watch list as the name fades into a memory of a once triumph company. A major player in the drug industry the company has declined into nothingness which is not related to the company's viability, but rather one of its many, many products that got it involved with the generic brands of Opiod pain products, and the legal issues that followed. Teva is recently returning since July 26th as it announced a settled lawsuit for Opiod liability for $4.25 Billion. The company is regaining footing in the industry while everyone in government is pushing for lower drug prices, a move that will certainly favor this company's bread and butter, generic alternatives.
TEVA is a particular interest for myself to consider placing a investment in for long term hold as the company displays profitability and return to its high before the lawsuit. Furthermore TEVA reminds me of Warren Buffets investment strategy when he was starting out, buying "cigar butt" companies which had one or two puffs left. TEVA if all goes well with the tariffs and the companies return to the industry in its bread and butter pharmaceutical drugs could take off.
Financial highlights: Q1 2025
revenue $3.9 billion, marking a 5% increase year over year.
EPS: $.52 up 8% from previous year
Free Cash Flow: $1.6Billion and $1.9Billion
Product Portfolio: Focus on innovative medicines, with key products: Austedo, Ajovy, and Uzedy showing significant growth.
Moving Average: the stock is above both the 20-day and 50-day SMA, indicating short to medium bullish momentum. However, it's slightly below the 200-SMA suggesting that the long term trend is still being tested.
Technical Indicators:
MACDA (12,26): 0.62 indicating bullish
RSI: 61.24 overbought
ATR: .77, moderate volatility.
Future Outlook
Revenue Forecast $16.8-$17.3 Billion
EPS Forecast: $2.45-$2.65