Technical and Fundamental Analysis of TEVA Stock
By Glenford S. Robinson
Teva pharmaceutical Industries Ltd (NYSE: TEVA) is an Israeli pharmaceutical company developing, producing, and marketing generic medicines including a portfolio of specialty medicines. We will speak about the technical analysis aspect first before we proceed to speaking about the fundamentals. We have derived our technical analysis perspective by using our proprietary trading strategy. So, the technical analysis goes as follows.
Any TEVA stock price falling on or below the hypothesized mean of $22.00, will signal the initiation of a buy order. On the other hand, any price rising above the hypothesized mean of $22.00 or within the range of $22.00 to $23.26 and above, will signal the initiation of a sell order. As of writing this Technical Indicator article, (November 5, 2018) the price of TEVA hit a low of $21.98, which is well within our target range of initiating a buy order.
Therefore, if we had bought the stock at our hypothesized buy range of $22.00 or below, we would have made a nice profit of $0.85 (cents) per share because the stock closed at a $22.85 per share, a change of $0.26 (cents) per share, which is a 1.15% change for the day (November 5, 2018).
Not only that, an early morning trade right after the market opened at 9:45 am would have given us a nice gain of $1.26 per share if we had followed our Mstardom Finance trading strategy of closing our long position or shorting the stock when it got to our range’s upper limit garget of $23.26.
As soon as the price hit our $23.26 target, we would’ve had to exit the trade because in trading, greed causes traders to lose money, so as wise traders, we would’ve exited the trade several minutes before the stock got to its high point of $23.34. The Mstardom Finance community doesn’t care about a few extra pennies when we already got a sizable gain in our basket.
The good thing is that this Mstardom Finance Trading Strategy is still relevant at the present time and in the not-so-distant future, once the hypothesized mean and the character of the TEVA stock stays the same.
We are able to deduce such optimism because the stock has a very low volatility characteristic, based on our analytical assessment lend to us by our proprietary strategy.
All we at Mstardom Finance cares about is helping the retail trader make money. So, when you hop over to Mstardom Finance, you will see articles, posts, and trading tools that provide the little retail trader with resources and information that will help him or her compete with the institutional or professional trader. This is what our upcoming trading book will be about, preventing the retail trader from being victims of the financial markets.
Fundamental Analysis of TEVA Stock
Even though we have thoroughly assessed TEVA using technical analysis, there comes a point where we as responsible influencers in the trading community, must set a good example for up-and-coming retail traders to follow by not only relying on Technical Analysis, but also implementing the very important Fundamental Analysis in our research and assessment of potential stocks to trade. So, here is our take on the Fundamentals of TEVA stock.
Despite some minor setbacks, Teva Pharmaceutical Industries Ltd (NYSE: TEVA) has begun to see promising signs of progress, according to Chief Executive Officer Kare Schultz. The company’s drugs have experienced stiff competition from drug makers that make similar drugs to combat multiple sclerosis.
The company stated that revenue of its generic-drugs business declined 25% to $922 million culminating a series of quarterly decline over the past 7 quarters. Another contributing factor to the company’s struggles is the increase frequency of mergers among pharmacy chains. When pharmacy chains merge or consolidate, this reduces the buying pools of pharmacy outlets available to buy Teva-produced pharmaceutical.
The company’s best-selling multiple sclerosis drug, Copaxone has met stiff competition from rivals that competes with Teva by cutting prices of their drug offerings. Such competition is responsible for a North
American reduction in sales to the tune of 43% to $463 million for the quarter.
However, despite all the negatives that have undermined the company’s progress, there is still positive signs that the company is weathering the storm. This is due to some ambitious measures taken by Mr. Schultz, the company’s top executive. The Chief Executive has implemented some tough cost cutting measures, such as laying off employees (14000) and closing manufacturing facilities, [Dow Jones Newswire, 2018]. In fact, another positive is abound; the company’s recent research drug Celltrion BLA for CT-P10, a proposed Rituximab Biosimilar recently received positive recommendations from the FDA. If FDA approval is granted, CT-P10, a proposed biosimilar to Rituxan ®(rituximab), “will be the first rituximab biosimilar to be approved in the United States” according to the October 10, 2018 FDA Press Release.
As a result of these happenings, investors too have seen evidence of progress and as a result have supported the stock. This positive sentiment of investors has triggered an upward movement of the stock.
The above information was the reason why Teva appeared on the Mstardom Finance Stock Screener Radar. The Mstardom Finance team monitors the financial markets to identify potential winning stocks. After our tool locates a potential winning stock, we then analyze the stock to make sure that its price movement isn’t artificially inflated by looking at confirmatory fundamentals and logical technical analysis.
We then look at historical data of the stock over a predefined period, then placed this data in our proprietary analytical tool. The Mstardom Finance Analytical Tool then gives us all the necessary price points, such as entry points and exit points. For example, the tool tells us when to enter a trade and when to exit that trade.
We then write an article explaining the fundamentals and technical analysis of the stock. Our system also interprets the technical analysis results, so we can write a well- organized and conclusive article about the stock. The steps that we take in developing our trading strategy will be published in our upcoming book.
Teva Shares Rise as Investors Greet Progress in Turnaround
9:49 am ET November 1, 2018 (Dow Jones) Print
By Denise Roland
Pharmaceutical Industries Ltd: News Release October 10, 2018 12:30pm
Mr. Glenford S. Robinson is the Chief Executive Officer and Founder of Mstardom Finance. He is the editor-in-chief of News and Magazine article publishing. Mr. Robinson is also the lead developer of the Mstardom Finance Platform at Mstardom.com. He is passionate about quantitative finance and technologies associated with that discipline, such as python-based algorithmic programing. Mr. Robinson is also a Clinical Laboratory Scientist currently practicing laboratory medicine. When Mr. Robinson is not practicing laboratory medicine, writing articles, or studying finance, he is creating mathematical and statistical modules, using quantitative approaches to identify trading opportunities in the Forex and Stock Market.