FOREIGN VALUE: Teva
Market cap: $39.4 billion
P/E ratio: 41
Earnings growth: 17%
Dividend yield: 1.2%
When blockbuster drugs come off patent, it's usually a win for a generic pharmaceuticals maker like Teva, but this Israeli company may benefit from another force: the U.S. government. Never before have both political parties wanted to revamp health care and make cost-cutting a centerpiece of reform. This creates greater incentive for prescription benefits management companies and doctors to favor generic drugs over brand-name treatments.
The stock is trading at a high trailing P/E ratio, but a forward P/E of 11 times projected earnings shows that investors could be getting growth on the cheap.
--K.B.
NEXT: FOREIGN VALUE: Total
-
Abbott -
Coca-Cola -
General M... -
J&J -
P&G -
Waste Man... -
McDonald's -
FPL -
Accenture -
Chubb -
Cisco -
Microsoft -
Walgreen -
Gilead -
Mastercard -
Thermo Fi... -
Baker Hug... -
Becton Di... -
Bristol-M... -
Carlisle -
Noble -
Regal Bel... -
Valmont -
W.W. Grai... -
Aaon -
Exponent -
Lincoln E... -
Merit Med... -
Neogen -
NutriSystem -
Sykes -
Tessera -
BHP Billi... -
Diageo -
Petrobras -
Philips -
Potash -
Teva -
Total -
Unilever
Last updated June 11 2009: 10:27 AM ET
Criteria include low price/earnings and price/book ratios relative to competitors, rising profit margins, and accelerating earnings growth. All data related to stock price as of June 1, 2009. P/E ratios based on the previous 12 months' reported earnings. Earnings growth based on Wall Street estimates for the next three to five years.
