Teva stock down 10% despite strong earnings and sales, investors may see price dip as buying opportunity.

From Nasdaq: 2024-11-28 15:00:00

Teva Pharmaceutical Industries Limited’s stock has dropped by 10% in a month despite surpassing earnings and sales estimates. The decline may be due to investors’ reaction to the guidance increase. Teva is the largest generic drug company globally and is seeing growth in its new branded drugs like Austedo and Ajovy.

Teva has a strong pipeline of generics and biosimilars, with plans to launch several complex generic products and biosimilars by 2027. The company expects continued growth in its U.S. generics business driven by new product launches. Teva has resolved opioid litigation, settling with all 50 U.S. states and other litigants.

Teva’s stock has outperformed the industry, sector, and S&P 500 this year, showing improvement after years of suppression. The stock is trading at an attractive valuation compared to the industry. The Zacks Consensus Estimate for earnings has remained stable for 2024 but slightly declined for 2025. Teva’s new drugs and stable generics business are reviving top-line growth.

Investors should consider staying invested in Teva’s stock, given the company’s path to long-term growth. With a focus on new product launches, stable generics segment, and a robust pipeline, Teva is working toward improving margins and lowering debt. The stock’s recent price dip could be a buying opportunity for long-term investors looking for growth potential.



Read more at Nasdaq: TEVA Stock Down 10% in a Month: Should You Buy the Dip?