Generic-drug maker Teva Pharmaceuticals
Sales rose 20% on strong sales of generic versions of GlaxoSmithKline's
Some of the increased contribution to the top line may be due to the woes that Biogen Idec
Adjusted earnings per share came in up 13% year over year, excluding charges for the acquisition of Bentley Pharmaceuticals and some issues with auction rate securities. That's some nice, steady growth for sure.
Teva has generated $2.2 billion in free cash flow over the past 12 months. Trading at about 15.3 times FCF, Teva is certainly not cheap, but the big question is whether it can beat the market from here. There are a lot of deeply discounted stocks out there, and I have a hard time seeing a defensive stock like Teva doing extraordinarily well once the economy starts booming again. Depending on when you think that'll happen will probably determine whether Teva is right for your portfolio.
Johnson & Johnson and Glaxo are Income Investor recommendations. To see how dividend-paying stocks can offer both secure income and the opportunity for growth, take a free look at this newsletter service with a 30-day free trial.