The stock market is witnessing wild swings as red-hot inflation, the Fed’s rate hikes, ongoing geo-political instability, and other macroeconomic headwinds have battered the economy.
JP Morgan CEO Jamie Dimon expects the economy to hit a recession next year. He also estimates the Fed’s benchmark interest rates to go higher than the 4%-4.5% level as it fights the stubbornly high inflation.
However, stocks rose on Monday as key quarterly reports lifted optimism about the corporate earnings season. Moreover, based on historical trends, CNBC’s Jim Cramer expects a powerful rally later this month or at the beginning of November.
He noted that the market tends to bottom in mid-to-late October and then leads into a “powerful” rally, providing a terrific buying opportunity.
TEVA Pharmaceuticals Industries Limited (TEVA)
Headquartered in Tel Aviv-Yafo, Israel, TEVA develops, manufactures, markets, and distributes generic medicines, specialty medicines, and biopharmaceutical products in North America and internationally.
The company has partnered with MedinCell to develop and commercialize several long-acting injectable products, including a risperidone suspension for treating schizophrenia patients.
On October 6, TEVA announced the initiation of a 3-year longitudinal registry and study to assess the impact of tardive dyskinesia (TD) and real-world use of AUSTEDO® (deutetrabenazine) tablets. The company aims to highlight the impact of TD and implement care strategies to improve patients’ lives.
In late September, the company announced the launch of the Honestly HD website, which aims to provide information and resources to help the Huntington’s Disease (HD) community understand its symptoms and how HD chorea is to be addressed with a healthcare provider.
For the second quarter ended June 30, 2022, TEVA’s net revenue came in at $3.79 billion. Its gross profit came in at $1.79 billion. The company’s cash flow generated from operating activities amounted to $123 million, while its non-GAAP EPS came in at $0.68.
TEVA’s EBIT has grown at a 3.7% CAGR over the past three years, while its levered FCF has grown 5% in the same period.
Analysts expect TEVA’s EPS to grow 4.9% year-over-year to $0.62 in the quarter ended September 2022. The company has an impressive earnings surprise history, as it topped Street EPS estimates in three of the trailing four quarters.
The company’s shares have gained 16.7% over the past three months to close its last trading session at $8.18.
TEVA’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall rating of B, which equates to Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.
It has an A grade for Growth and Value. The stock is ranked #26 out of 161 stocks in the Medical – Pharmaceuticals industry.
Beyond the POWR Ratings grades I have highlighted above, you can see TEVA’s ratings for Stability, Sentiment, Quality, and Momentum here.
Forrester Research, Inc. (FORR)
FORR is an independent research and advisory services company that operates through its Research; Consulting; and Events segments. The company sells its products and services through direct sales in the United States, Europe, the United Kingdom, Canada, the Asia Pacific region, and internationally.
In the fiscal second quarter that ended June 30, 2022, FORR’s net revenues increased 15.2% year-over-year to $148.25 million. Its adjusted income from operations grew 41.8% from the year-ago value to $27.89 million, while its adjusted net income increased 51.4% from the prior year period to $19.22 million. In addition, FORR’s non-GAAP EPS came in at $1, registering an increase of 51.5% year-over-year.
FORR’s revenue has grown at an 8.4% CAGR over the past three years and at a 9.9% CAGR over the past five years. Its EBITDA has grown at a 25.6% CAGR over the past three years.
Street expects FORR’s EPS for the fiscal year ending December 2022 to increase 10.1% year-over-year to $2.30. Its revenue for the same period is expected to increase 9.4% year-over-year to $540.98 million. The stock has surpassed the consensus EPS estimates in each of the trailing four quarters, which is impressive.
FORR’s shares have gained 11.6% over the past three years to close the last trading session at $39.05.
FORR’s POWR Ratings reflect solid prospects. The stock has an overall rating of A, equating to a Strong Buy in our proprietary rating system.
It also has an A grade for Growth, Sentiment, and Quality and a B for Value and Stability. FORR is ranked first in the 104-stock Financial Services (Enterprise) industry. To access FORR’s rating for Momentum, click here.
TEVA shares were trading at $8.35 per share on Tuesday afternoon, up $0.17 (+2.08%). Year-to-date, TEVA has gained 4.24%, versus a -20.87% rise in the benchmark S&P 500 index during the same period.
About the Author: Komal Bhattar
Komal’s passion for the stock market and financial analysis led her to pursue investment research as a career. Her fundamental approach to analyzing stocks helps investors identify the best investment opportunities. More…
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