Why Teva Is Ready to Rebound

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, generic drug giant Teva Pharmaceutical Industries (NYSE: TEVA  ) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Teva and see what CAPS investors are saying about the stock right now.

Teva facts

Headquarters (founded)

Petach Tikva, Israel (1901)

Market Cap

$32.6 billion

Industry

Pharmaceuticals

Trailing-12-Month Revenue

$20.3 billion

Management

CEO Dr. Jeremy Levin (since 2010)
CFO Eyal Desheh (since 2008)

Return on Equity (average, past 3 years)

12.4%

Cash/Debt

$2.9 billion / $14.7 billion

Dividend Yield

2.8%

Competitors

Actavis
Novartis
Mylan

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 98% of the 1,769 members who have rated Teva believe the stock will outperform the S&P 500 going forward.

Just last week, one of those Fools, MMcCabeNMC, succinctly summed up the Teva bull case for our community:

Teva is a huge generic drug maker, with some outreach into the primary drug market. The company's balance sheet is strong, and the stock pays a reasonable dividend. With governments emphasizing cost controls for medical expense, Teva has a guaranteed market.

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, Teva may not be your top choice.

We've found another stock we are incredibly excited about -- excited enough to dub it "The Motley Fool's Top Stock for 2013." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.

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Read/Post Comments (3) | Recommend This Article (3)

Comments from our Foolish Readers

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  • Report this Comment On February 25, 2013, at 10:09 AM, Tsharp1947 wrote:

    Hundreds of similar 'positive' opinions on TEVA over the last 2-3 years here and all wrong! I and many others are in at price in the upper 40s. Covered calls have cut my losses but I'm really tired of the same claims of how 'cheap' this stock is. The "new management" play is getting very stale and very old while earnings remain basically flat. All I want is $40 now and someone to take this dog to a new home!

  • Report this Comment On February 25, 2013, at 11:18 AM, JohnCLeven wrote:

    @Tsharp1947

    Teva has been frustrating for you i'm sure. That said, TEVA is cheap at 13-14x EV/FCF. Earnings have been a bit choppy, but over the longer term (past 10 years) the company has grown well. (despite it being a bumpy ride.) Teva has a favorable position in a solid sector, and if you still own shares, i'd encourage you to hold onto them.

    Good luck.

  • Report this Comment On February 26, 2013, at 2:38 PM, craoli wrote:

    MYL is the better buy. Check zacks and their rating of myl vs teva.

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