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Will TEVA Pharmaceuticals Pop Or Drop This Year?

|Includes: Teva Pharmaceutical Industries Limited (TEVA)
Summary

Teva has laid off 14,000 employees in 2017.

Teva has dropped over 80% from their all time highs.

Teva has a large free cash flow.

Have you ever been sick or gone to the doctor and told to buy extremely expensive pills? Look no further, Teva Pharmaceuticals is the number one generic drug producer to allow getting better an affordable way for everyone. Fundamentally, Teva Pharmaceuticals is an excellent investment due to several reasons. First, healthcare for the most part is inelastic. Essentially, consumers do not have control when they get sick or what type of ailment they have. Additionally, illness is not affected by ingation, recessions, or politics. Today, more brand-name drugs are increasing in price, resulting in physicians opting for a broader and cheaper generic drug option. On the technical side, Teva has dropped over 80% from all time highs over the past couple of years, eliminated its dividend, and laid off approximately 14,000 employees last year. Now you might think why would anyone want to invest in this company that appears to be failing miserably? Wrong, this is one of the most prime opportunities in the market right now as Teva is severely undervalued as the largest drug producer. The dividend and jobs that ended last year saved approximately $3 billion by the end of 2019 allowing for a 16% reduction in Teva's total expenditures. Furthermore, Teva has a healthy cash flow, generating $2.7 billion in free cash flow during 2017. Teva's straits may have been over exaggerated by Wall Street traders and many financial experts such as Warren Buffet are clearly viewing Teva as having a humungous upside and investing large amounts.

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I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.