Investors Are Overpaying for Teva’s Turnaround

It is possible to imagine a bright future at Teva Pharmaceutical Industries for the first time in quite a while. There is no great need to rush into the stock, however.

Teva announced that it expects sales of up to $18.8 billion and adjusted earnings of $2.25 to $2.50 a share in 2018. Wall Street analysts were looking for more, and the stock sold off sharply. The generic drugs giant has been grappling with a lot of problems, most notably a $32 billion debt load and falling prices on its U.S. products.