#3 - Teva Pharmaceuticals (NYSE:TEVA)
Sticking in the pharmaceutical sector, we have Teva Pharmaceuticals (NYSE:TEVA). For the first three months of 2020, the stock is down less than 15%. However, since reaching a high of $13.45 on February 19, the stock has plunged nearly 40%. So why has the stock been punished?
On the one hand, it’s not hard to see why. The company has had legal issues, replaced its CEO and cancelled its dividend. But other than that, how did you like the play Mrs. Lincoln?
Well in the case of Teva, new CEO Kare Schultz has been a stabilizing force. And the company’s balance sheet is reflecting that. Through a series of initiatives, the company has reduced its net debt by approximately $8 billion. All of this gives TEVA stock the feel of one that has plunged too far too fast. And anytime investors hear those words, the stock is worth a look.
And if investors need to see a catalyst, Teva may have one of those as well. The company has played a role in the race to provide treatment for those infected by the coronavirus, donating more than 6 million doses of the drug hydroxychloroquine through wholesalers. Although it will take some time to determine if the drug will be an effective treatment for the virus, initial results are promising. That could be a short-term catalyst for the stock until a vaccine is ready.
About Teva Pharmaceutical Industries
Teva Pharmaceutical Industries Limited develops, manufactures, markets, and distributes generic medicines, specialty medicines, and biopharmaceutical products in North America, Europe, Israel, and internationally. It offers generic medicines in various dosage forms, such as tablets, capsules, injectables, inhalants, liquids, transdermal patches, ointments, and creams; sterile products, hormones, high-potency drugs, and cytotoxic substances in parenteral and solid dosage forms; and generic products with medical devices and combination products.
Read More - Current Price
- $22.09
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 6 Buy Ratings, 2 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $20.88 (5.5% Downside)
