Based on the aggregated intelligence of 115,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, generic-drug maker Teva Pharmaceutical Industries (Nasdaq: TEVA) has earned a coveted five-star ranking. Our data has shown that five-star stocks outperform the market by a significant margin; conversely, one-star stocks have woefully lagged the market average.
With that in mind, let's take a closer look at Teva Pharmaceutical's business and see what CAPS investors are saying about the stock right now.
Teva facts
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Headquarters (Founded)
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Petach Tikva, Israel (1901)
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Market Cap
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$35.44 Billion
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Industry
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Pharmaceuticals
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Trailing-12-Month Revenue
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$10.34 Billion
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Management
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CEO Shlomo Yanai
CFO Eyal Desheh
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Return on Capital (Average, Past Three Years)
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8.97%
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Competitors
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Watson Pharmaceuticals
Novartis (NYSE: NVS)
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CAPS Members Bullish on TEVA Also Bullish on:
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Johnson & Johnson (NYSE: JNJ)
General Electric (NYSE: GE)
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CAPS Members Bearish on TEVA Also Bearish on:
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Pfizer (NYSE: PFE)
Citigroup (NYSE: C)
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Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
Over on CAPS, 262 of the 273 All-Star members who have rated Teva -- some 96% -- believe the stock will outperform the S&P 500 going forward. These All-Star bulls include VoodooSaviour and TMFDeej, both of whom are ranked in the top 10% of our community.
In August, VoodooSaviour noted:
G7 is getting older and more medicine prone and the developing world is prospering. ... I expect this adds up to an expanding generic drug market. [Teva] is the leader.
A more recent pitch from TMFDeej last month shares that sentiment and elaborates on the stock's several key catalysts:
Teva is the world's largest manufacturer of generic drugs. It currently controls 20% of the market for generic drugs and after its recent acquisition of Barr Pharmaceuticals (NYSE: BRL) is completed it will control 24%. ... More than 50% of Teva's sales come from the United States, so a major policy change there which favors generic drugs would be a boon for the company.
Not only is Teva currently well positioned to take advantage of the trend towards cheaper drugs, it has a stellar balance sheet that contains more than $1 billion in cash that it plans to use for future acquisitions. Teva has already made $750 million worth in acquisitions so far this year.
What do you think about Teva Pharmaceutical, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 115,000 investors are waiting to hear what you have to say. CAPS is 100% free, so get started!
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