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5-Star Stocks Poised to Pop: Teva

Based on the aggregated intelligence of 140,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, generic-drug specialist Teva Pharmaceutical (Nasdaq: TEVA  ) has earned a coveted five-star ranking.

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

Teva facts

Headquarters (Founded)

Petach Tikva, Israel (1901)

Market Cap

$44.8 billion

Industry

Pharmaceuticals

Trailing-12-Month Revenue

$12.2 billion

Management

CEO Shlomo Yanai (since 2007)
CFO Eyal Desheh (since 2008)

Compound Annual Revenue and Net Income Growth (Over Past 5 Years)

25.2% and 45.3%

Cash/Debt

$1.8 billion/$6.8 billion

Competitors

Novartis (NYSE: NVS  )
Watson Pharmaceuticals (NYSE: WPI  )
Mylan (Nasdaq: MYL  )

CAPS Members Bullish on TEVA Also Bullish on

Johnson & Johnson (NYSE: JNJ  )

CAPS Members Bearish on TEVA Also Bearish on

Intel (Nasdaq: INTC  )
Research In Motion (Nasdaq: RIMM  )

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 96.6% of the 1,492 members who have rated Teva believe the stock will outperform the S&P 500 going forward. These bulls include kahunacfa and All-Star dhd1491, who is ranked in the top 5% of our community.

Just last month, kahunacfa reminded Fools that Teva "is a large, established, quality generic drug manufacturer." Our CAPS member continues:

More and more patients are moving to generic drugs to combat the high cost of the NAME brand drug. ... TEVA is quick to move to the most attractive compounds. TEVA is a Long-term buy - -even in an uncertain market and turmoil in Healthcare.

In a pitch from one day later, dhd1491 also makes a rather generic argument. Here's an excerpt:

Generics, in particular, will benefit from the current effort to rein in escalating health costs. Teva, the largest generic-maker in the world, is right in the sweet spot for top line growth. At a forward PE of less than 12, Teva is an incredible bargain for a company that should double sales every 4-5 years. Current market angst over loss of Copaxone patent and worry about indigestion from Barr acquisition are holding the lid on this stock; short-term static, in my opinion.

Note that Copaxone's patent doesn't expire until 2014, though Mylan is launching an early challenge with its own generic version of Teva's multiple sclerosis treatment.

What do you think about Teva, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. The CAPS community is waiting to hear your opinions. CAPS is 100% free, so get started!  

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Novartis is a Motley Fool Global Gains pick, Johnson & Johnson is an Income Investor selection, and Intel is a choice of Inside Value. The Fool's disclosure policy always gets a perfect score.


Comments from our Foolish Readers

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  • Report this Comment On October 22, 2009, at 1:45 PM, InfoThatHelp wrote:

    Looking at tradings on Rim shares reveal periodic spurts of tens of thousands lots of Puts pegged between $66.38 and $68.07 on every trading day while the bidding continues to scale down to the $65 level often with more than $.50 gap between the bids and the asks. This signals significant Rim share offloading activities of investors heavy salvaging of residual sliding Rim share value. The major concern is Rim seems to fail in bolstering Rim share price even with anouncements of its new flagship Bold 9700 release. The lack of interest in the released Storm 2 also point to a dismal Christmas sales for Rim.

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Related Tickers

2/10/2012 4:00 PM
TEVA $44.16 Down -0.50 -1.12%
Teva Pharmaceutica… CAPS Rating: *****
NVS $55.89 Down -0.46 -0.82%
Novartis CAPS Rating: *****
RIMM $15.44 Down -0.46 -2.89%
Research In Motion… CAPS Rating: *
WPI $57.99 Down -0.26 -0.45%
Watson Pharmaceuti… CAPS Rating: ***
INTC $26.70 Down -0.17 -0.61%
Intel Corp CAPS Rating: ****
JNJ $64.60 Down -0.29 -0.45%
Johnson & Johnson CAPS Rating: *****
MYL $22.80 Down -0.16 -0.70%
Mylan Inc. CAPS Rating: ****

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