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What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
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Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
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Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
#1 (Strong Buy) stocks have produced an unmatched +23.7% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: FedEx (FDX - Free Report) Based in Memphis, TN, FedEx Corporation is the leader in global express delivery services. The company, founded in 1971, provides a broad portfolio of transportation, e-commerce, and business services through companies competing collectively, operating independently, and managed collaboratively, under the FedEx brand.
FDX is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 15.39; value investors should take notice.
Three analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.11 to $19.72 per share. FDX also boasts an average earnings surprise of +13.1%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, FDX should be on investors' short list.
Shares in FedEX are still up about 13% YTD despite a nearly 15% decline over the past month. The strong performance has been boosted by ongoing strength in FedEX's main express segment, due to higher revenues per package and higher U.S. volumes. I expect the recent spinoff of the freight segment, which just completed on June 1, to benefit FedEX's remaining businesses.
FedEx is downgraded to Hold due to a mix of catalysts and valuation changes. On the positive side, current profit margins are above 5-year averages, and Network 2.0 can drive further margin improvements. The impacts from the FedEx Freight spin-off can be more subtle depending on your timeframe.
Once upon a time, Teva Pharmaceutical Industries Ltd. (TEVA +0.20%) was a stock that many investors didn't want to touch with a 10-foot pole. The pharmaceutical company faced legal challenges over its opioid drugs. Its debt load was staggering. Sentiment was overwhelmingly negative.
But there's a much different story for Teva these days. The pharma stock has soared more than 100% over the last 12 months. Wall Street thinks that Teva has even more room to run. Are analysts right to be bullish? I think so.
Image source: Getty Images.
Of the 13 analysts surveyed by S&P Global (SPGI +1.52%) in May, 12 rated Teva as a "buy" or "strong buy." The lone outlier recommending holding the stock. The consensus 12-month price target reflects a potential upside of around 11%.
Why is Wall Street still bullish about Teva after its impressive gains? For one thing, the company's branded portfolio is firing on all cylinders. Huntington's chorea and tardive dyskinesia drug Austedo is leading the way, with first-quarter sales jumping 41% year over year to $578 million.
Teva has also paid down much of its debt. Its financial leverage stood at 67% as of March 31, 2026, a significant improvement from the past. The company is cutting costs, too. Teva expects to realize around $470 million of net savings this year from its transformation initiatives.
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Analysts recognize the promise of Teva's pipeline. The U.S. Food and Drug Administration (FDA) is set to make a decision later this year on approval of olanzapine extended-release injectable suspension (TEV-'749) for the treatment of schizophrenia in adults. Evercore ISI's (EVR +0.64%) Umer Raffat thinks the potential FDA approval of olanzapine is Teva's "most meaningful catalyst."
Furthermore, Teva's valuation still looks attractive even after its tremendous performance over the last 12 months. The stock trades at only 13 times forward earnings, well below the average forward earnings multiple of 16.5 for the healthcare sector. You could argue that's value stock territory.
Teva's turnaround is real There's no question at this point that Teva's turnaround is real. And Wall Street believes the stock has more gas in the tank.
To be sure, Teva still faces challenges. Some litigation uncertainty lingers. The company's generic-drug business continues to face pricing pressure. Pipeline setbacks are a perpetual threat.
However, Teva is no longer a company in crisis. Its revenue and profits are growing. Its balance sheet is stronger. Most stories that begin with "once upon a time" have a happy ending. This one could, too, if analysts are right.
Keith Speights has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Evercore and S&P Global. The Motley Fool has a disclosure policy.
It's no longer a secret that the Teva Pharmaceutical Industries (TEVA +0.20%) of the past is no more. The Israel-based company is no longer strictly a generic-drug maker, burdened by heavy debt and legal liabilities related to the opioid crisis.
While generic drugs remain a large portion of Teva's overall business, they made up just over 50% of overall sales in the last quarter. Branded drug products could soon account for the majority of the company's annual revenue.
In recent years, Teva has also reduced outstanding debt by over $5 billion, and has settled its past opioid-related legal issues. Wall Street has taken notice of the transformed Teva, as evidenced by the stock's strong performance, particularly its more than doubling over the past 12 months.
Image source: Getty Images.
However, Teva still has plenty of room to run and appears poised to take off in a big way over the next few years, as this turnaround company has the potential to become a promising growth stock.
Teva and its ongoing transformation As seen in Teva's first-quarter earnings report, its branded drug portfolio currently serves as the company's main growth driver. Although overall sales declined by 1% last quarter to $4 billion, this was due to a 13% drop in the company's generic drug sales. Among branded products, Teva knocked it out of the park.
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For example, Austedo, a treatment for Huntington's disease-related involuntary movement disorders, generated $578 million in revenue, a 41% increase from a year ago. Another branded drug, migraine prevention therapy Ajovy, reported $196 million in sales, a 35% year-over-year increase, while schizophrenia treatment Uzedy reported $63 million in sales, a 62% increase.
At the same time, Teva's generic drug unit continues to shift toward biosimilars, or FDA-approved versions of existing drugs. The segment is expected to deliver $800 million in revenue by 2027. Over time, this could help stabilize and grow the company's legacy business unit.
These small improvements notwithstanding, what has investors bidding up Teva shares is the potential of the company's drug pipeline. Over the next decade, this pipeline could add a litany of new blockbuster drugs to the company's portfolio.
Why things are still just getting started The situation may be improving incrementally with Teva, but again, that's not the reason investors are getting excited about this stock. Between 2026 and 2030 alone, the company could bring a schizophrenia treatment, an asthma treatment, and an ulcerative colitis treatment to market.
In the aggregate, these therapies could add as much as $7 billion to annual sales. Teva is also adding promising drug candidates to its portfolio via acquisition, such as a recently announced deal to acquire privately held Emalex Biosciences, for $700 million in cash plus $200 million in potential earn-out payments.
Emalex's main asset is a Tourette's treatment known as ecopipam. While ecopipam is still in late-stage clinical trials, this candidate is another potential blockbuster drug in the making. As analysts at Jefferies recently argued, this drug could eventually reach $1 billion in peak annual sales. With this in mind, Teva appears well positioned to meet forecasts calling for 30% earnings growth in 2027.
Similarly strong results could become possible in 2028 and beyond. Trading at 13 times forward earnings, Teva's valuation is in the mid-range among pharmaceutical stocks. At this reasonable valuation, shares could rise in line with earnings growth. Given these promising prospects, consider Teva a solid long-term buy among healthcare stocks.
TEL AVIV, Israel, May 18, 2026 (GLOBE NEWSWIRE) -- Teva Pharmaceutical Industries Ltd. (NYSE and TASE: TEVA) today announced that Fitch Ratings Agency ("Fitch") has raised the Company's corporate credit rating to Investment Grade BBB-, with a stable outlook, from BB.
The olanzapine long-acting injectable (TEV-’749) is designed to deliver the efficacy of olanzapine in a subcutaneous formulation1 administered every four weeks.If approved, TEV-‘749 could help fill a significant unmet need in available schizophrenia treatment options by addressing the lack of a viable long-acting olanzapine formulation.Teva is committed to advancing this innovative treatment option, strengthening its scientific leadership in complex neurological conditions as part of its Pivot to Growth strategy. TEL AVIV, Israel and PARIS, May 21, 2026 (GLOBE NEWSWIRE) -- Teva Pharmaceuticals International GmbH, a subsidiary of Teva Pharmaceutical Industries Ltd. (NYSE: and TASE: TEVA) and Medincell (Euronext: MEDCL), today announced that the European Medicines Agency (EMA) has accepted the Marketing Authorization Application (MAA) for olanzapine long-acting injectable (TEV-‘749) for the treatment of schizophrenia in adults. TEV-‘749 aims to address treatment adherence in real-world settings and contribute to long-term disease management in people living with schizophrenia.1
“Treatment adherence remains a challenge for people living with schizophrenia including those who rely on oral forms of Olanzapine. TEV-‘749, our investigational subcutaneously delivered olanzapine LAI, has the potential to help provide stability by offering the proven efficacy and safety of olanzapine as a once-every four weeks treatment,” said Eric Hughes, MD, PhD, Executive Vice President, and Chief Medical Officer at Teva. “For too long, treatment options have been limited by the lack of a viable long-acting olanzapine formulation, and we look forward to working with the EMA to help address this gap in care.”
“Daily oral olanzapine is one of the most commonly prescribed antipsychotics in Europe for people living with schizophrenia, and long-acting injectables are already well established in managing serious psychiatric conditions across the region,” said Christophe Douat, CEO of Medincell. “We believe a practical long-acting olanzapine option that fits more naturally into patients’ lives can help address a real and persistent need in schizophrenia.”
Schizophrenia affects 0.3 - 1.5% of the population in Europe2, yet those living with the condition often face profound challenges of social isolation, unstable employment 3, and a life expectancy reduced by 15–20 years 4.
TEV-‘749 is not approved by any regulatory authority worldwide at this time. The submission to the EMA is supported by an extensive clinical development program, including the Phase 3 SOLARIS study. Across clinical development, TEV-‘749 demonstrated efficacy, a systemic safety profile, and exposure consistent with oral olanzapine.
TEV-‘749 utilizes SteadyTeq™, a copolymer technology proprietary to Medincell that provides a controlled, steady, prolonged release of olanzapine.
About Schizophrenia
Schizophrenia is a chronic, progressive and severely debilitating mental disorder that affects how one thinks, feels and acts.2 Patients experience an array of symptoms, which may include delusions, hallucinations, disorganized speech or behavior and impaired cognitive ability.2,3,4 Approximately 1% of the world’s population will develop schizophrenia in their lifetime, and 0.3 - 1.5% of the population in Europe are currently diagnosed with the condition.3,4 Although schizophrenia can occur at any age, the average age of onset tends to be in the late teens to the early 20s for men, and the late 20s to early 30s for women.4 The long-term course of schizophrenia is marked by episodes of partial or full remission broken by relapses that often occur in the context of psychiatric emergency and require hospitalization.4 Approximately 80% of patients experience multiple relapses over the first five years of treatment, and each relapse carries a biological risk of loss of function, treatment refractoriness, and changes in brain morphology.5,6,7 Patients are often unaware of their illness and its consequences, contributing to treatment nonadherence, high discontinuation rates, and ultimately, significant direct and indirect healthcare costs from subsequent relapses and hospitalizations.2,3,4,5,6,7
About Teva
Teva Pharmaceutical Industries Ltd. (NYSE and TASE: TEVA) is transforming into a leading innovative biopharmaceutical company, enabled by a world-class generics business. For over 120 years, Teva’s commitment to bettering health has never wavered. From innovating in the fields of neuroscience and immunology to providing complex generic medicines, biosimilars and pharmacy brands worldwide, Teva is dedicated to addressing patients’ needs, now and in the future. At Teva, We Are All In For Better Health. To learn more about how, visit www.tevapharm.com.
Medincell is a clinical- and commercial-stage biopharmaceutical licensing company developing long-acting injectable drugs in many therapeutic areas. Our innovative treatments aim to guarantee compliance with medical prescriptions, to improve the effectiveness and accessibility of medicines, and to reduce their environmental footprint. They combine active pharmaceutical ingredients with our proprietary BEPO® technology which controls the delivery of a drug at a therapeutic level for several days, weeks or months from the subcutaneous or local injection of a simple deposit of a few millimeters, entirely bioresorbable. The first treatment based on BEPO® technology, intended for the treatment of schizophrenia, was approved by the FDA in April 2023, and is now distributed in the United States by Teva under the name UZEDY® (BEPO® technology is licensed to Teva under the name SteadyTeq™). We collaborate with leading pharmaceutical companies and foundations to improve global health through new treatment options. Based in Montpellier, Medincell currently employs more than 140 people representing more than 25 different nationalities.
This Press Release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are based on management’s current beliefs and expectations and are subject to substantial risks and uncertainties, both known and unknown, that could cause our future results, performance or achievements to differ significantly from that expressed or implied by such forward-looking statements. You can identify these forward-looking statements by the use of words such as “should,” “expect,” “anticipate,” “estimate,” “target,” “may,” “intend,” “plan,” “believe,” “aim” and other words and terms of similar meaning and expression in connection with any discussion of future operating or financial performance. Important factors that could cause or contribute to such differences include risks relating to: our ability to successfully develop olanzapine LAI (TEV-‘749) for the treatment of adult patients diagnosed with schizophrenia and to obtain regulatory approvals; our ability to successfully compete in the marketplace, including our ability to successfully execute our Pivot to Growth strategy, including to expand our innovative and biosimilar medicines pipeline and profitably commercialize the innovative medicines and biosimilar portfolio, whether organically or through business development; our significant indebtedness; our business and operations in general; compliance, regulatory and litigation matters; other financial and economic risks; and other factors discussed in our Quarterly Report on Form 10-Q for the first quarter of 2026, and in our Annual Report on Form 10-K for the year ended December 31, 2025, including in the sections captioned “Risk Factors” and “Forward-Looking Statements.” Forward-looking statements speak only as of the date on which they are made, and we assume no obligation to update or revise any forward-looking statements or other information contained herein, whether as a result of new information, future events or otherwise. You are cautioned not to put undue reliance on these forward-looking statements.
References
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1 Data on file. Parsippany, NJ: Teva Neuroscience, Inc.
2 European Brain Council. Rethinking Schizophrenia. 2024. Available at https://www.braincouncil.eu/projects/rethinking-schizophrenia/#:~:text=Rethinking%20Schizophrenia%20is%20a%20research,that%20of%20the%20general%20population. Last accessed March 20263 Teva What lies beneath: Uncovering the hidden drivers and impact of Stigma in Schizophrenia White Paper 2025. Available at https://www.tevapharm.com/globalassets/tevapharm-vision-files/teva-white-paper-uncovering-hidden-drivers-and-impact-stigma-in-schizophrenia.pdf Last accessed March 2026
4 Thornicroft G. British Journal of Psychiatry. 2011;199(6):441-442.
Key Takeaways Teva's MAA for olanzapine long-acting injectable (TEV-'749) in adults with schizophrenia accepted by EMA.TEVA backed the filing with phase III SOLARIS data showing efficacy similar to oral olanzapine.TEVA said the once-monthly injection could address the unmet need for long-acting olanzapine options. Teva Pharmaceutical Industries Limited (TEVA - Free Report) announced that the European Medicines Agency (“EMA”) has accepted its marketing authorization application (“MAA”) seeking approval for olanzapine long-acting injectable (TEV-‘749) for treating adults with schizophrenia.
The filing in Europe is supported by an extensive clinical development program, including data from the phase III SOLARIS study. TEV-‘749 showed similar efficacy and safety to existing oral olanzapine products.
The olanzapine long-acting injectable (TEV-’749) is being developed as a once-monthly subcutaneous injection designed to provide the benefits of olanzapine. Olanzapine is a prescription atypical antipsychotic medication used primarily to treat schizophrenia and bipolar disorder.
Management noted that upon potential approval, TEV-‘749 could address a major unmet need in schizophrenia treatment by addressing the lack of a viable long-acting olanzapine option.
Olanzapine LAI is currently under review in the United States for treating schizophrenia in adults.
TEVA’s Price PerformanceYear to date, shares of Teva have rallied 9.4% compared with the industry’s 0.3% rise.
Image Source: Zacks Investment Research
TEVA Eyes Expansion of Schizophrenia PortfolioTEVA currently markets Uzedy extended-release injectable suspension, a long-acting subcutaneous atypical antipsychotic injection, which was approved for the treatment of schizophrenia in the United States in 2023.
Uzedy is one of the key new branded drugs for Teva, contributing meaningfully to its revenues.
In the first quarter of 2026, Uzedy’s sales surged 62% year over year to $63 million, mainly driven by volume growth. TEVA anticipates Uzedy sales to be in the range of $250-$280 million in 2026.
A potential nod to olanzapine long-acting injectable (TEV-‘749) will help Teva diversify and address a broader schizophrenia patient population.
Besides olanzapine LAI, Teva has also made decent progress with its branded pipeline, which includes duvakitug, its anti-TL1A therapy for inflammatory bowel diseases, ulcerative colitis and Crohn’s disease.The company has partnered with Sanofi (SNY - Free Report) for duvakitug to maximize the value of the asset.
Teva and Sanofi will equally share the development costs globally. SNY is conducting phase III studies on duvakitug.
TEVA's Zacks Rank & Stocks to ConsiderTeva currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the biotech sector are Immunocore (IMCR - Free Report) and Liquidia Corporation (LQDA - Free Report) , each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Over the past 60 days, 2026 loss per share estimates for Immunocore have narrowed from 97 cents to 16 cents, while estimates for 2027 have moved from a loss of 39 cents to earnings of 11 cents. IMCR stock has lost 13.5% year to date.
Immunocore’s earnings beat estimates in three of the trailing four quarters, while missing the same on the remaining occasion, with the average surprise being 46.66%.
Over the past 60 days, estimates for Liquidia’s 2026 earnings per share have risen from $1.50 to $2.97, while estimates for 2027 have increased from $2.91 to $4.81. LQDA’s shares have surged 79.6% year to date.
Liquidia’s earnings beat estimates in three of the trailing four quarters, while missing the same on the remaining occasion, with the average surprise being 54.40%.
Teva Pharmaceutical (TEVA) delivered a strong Q1 2026, reinforcing my buy rating and the company's successful pivot to innovative growth assets. TEVA's innovative neuroscience franchise—AUSTEDO, AJOVY, and Uzedy—drove $838M in Q1 revenue, up 41% year over year, offsetting legacy generics decline. Management maintained full-year guidance, with stable gross margins (52.9%) and a clear path to 30% non-GAAP operating income margin by 2027.
Consider Teva Pharmaceutical Industries (TEVA +0.20%) the "comeback kid" among pharmaceutical stocks. As recently as a few years ago, the Israel-based company was not just facing headwinds with its legacy generic drug business, but also contending with high debt and massive opioid-related litigation liabilities.
Now Teva strengthened its balance sheet and put litigation issues into the rearview mirror, while transforming from a low-margin generic drug maker into a developer of higher-margin branded pharmaceuticals.
Better yet, the pivot remains in motion. Around 50% of Teva's overall sales are in generics, but this figure continues to change. Don't assume that the stock's 100% jump over the past year is a one-and-done event. As the transformation continues, shares may be in for further earnings growth and price appreciation.
Image source: Getty Images.
Teva and its spectacular comeback In 2024, when generic drugs made up over 57% of Teva's overall sales, the company reported $16.5 billion in sales; adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $4.8 billion; and non-GAAP (adjusted) earnings of $2.49 per share. A year later, generic drugs accounted for just half of Teva's overall sales, and the further increase in branded drug sales led to solid improvements in profitability.
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While overall sales increased by just 5%, to $17.3 billion, adjusted EBITDA and non-GAAP earnings per share (EPS) increased by 12% and 19%, respectively, during 2025. Furthermore, Teva reported strong sales figures for its flagship branded drug, Austedo, a treatment for certain Huntington's disease symptoms, as well as for its two up-and-coming branded drug products, Uzedy, a treatment for schizophrenia, and Ajovy, a therapy for migraine prevention. Last year, their sales were up 34%, 63%, and 30%, respectively.
In its latest earnings report, Teva reported sales growth for Austedo, Uzedy, and Ajovy of 41%, 62%, and 35%, respectively, as well as reiterated revenue outlook for each of the three branded drugs. The company also continued to use its cash flow to pay down debt. Over the past four years, net debt has decreased by over $5.5 billion, from $18.4 billion as of Dec. 31, 2022, to $12.9 billion as of March 31, 2026.
Why this hot pharma stock may have more room to run Don't expect things to slow down from here. If anything, Teva's transformation is gaining momentum. Analyst forecasts call for EPS to grow by around 30.8% during 2027. Earnings growth could stay elevated, even if Austedo, Ajovy, and Uzedy sales start to peak. Progress in bringing more of its pipeline candidates to market could help sustain organic growth.
Outside of organic growth, Teva has other avenues to improve earnings. A recent deal to acquire Emalex Biosciences for $700 million adds yet another potential blockbuster drug, ecopipam, to Teva's portfolio. Ecopipam is a Tourette syndrome treatment, and is close to the regulatory finishing line. Other efforts, such as further debt reduction, could also move the needle on Teva's continued high earnings growth.
Even if the stock merely maintains its current valuation of 14.7 times forward earnings, and shares rise in line with earnings growth, this could produce another strong run. As shares sit just a few dollars below multiyear highs, consider Teva one of the best pharmaceutical stocks to buy and hold.
PARSIPPANY, N.J., and TEL AVIV, Israel, June 01, 2026 (GLOBE NEWSWIRE) -- Teva Pharmaceutical Industries Ltd. (NYSE and TASE: TEVA) today announced that Richard Francis, Teva's President and CEO, will participate in a fireside chat at the Goldman Sachs Global Healthcare Conference on Monday, June 8, 2026. The fireside chat will begin at 8:00 A.M. Eastern Time.
To access live webcasts of the presentations, please visit Teva’s Investor Relations website at https://ir.tevapharm.com/Events-and-Presentations.
Archived versions of the webcasts will be available within 24 hours after the end of the live discussion and will be accessible for up to 30 days.
About Teva
Teva Pharmaceutical Industries Ltd. (NYSE and TASE: TEVA) is transforming into a leading innovative biopharmaceutical Company, enabled by a world-class generics business. For over 120 years, Teva’s commitment to bettering health has never wavered. From innovating in the fields of neuroscience and immunology to providing complex generic medicines, biosimilars and pharmacy brands worldwide, Teva is dedicated to addressing patients’ needs, now and in the future. At Teva, We Are All In For Better Health. To learn more about how, visit www.tevapharm.com.
This document and the presentation at the conference may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements regarding our financial guidance, which are based on management’s current beliefs and expectations and are subject to substantial risks and uncertainties, both known and unknown, that could cause our future results, performance or achievements to differ significantly from that expressed or implied by such forward-looking statements. These forward-looking statements include statements concerning our plans, strategies, objectives, future performance and financial and operating targets, and any other information that is not historical information. You can identify these forward-looking statements by the use of words such as “should,” “expect,” “anticipate,” “estimate,” “target,” “may,” “project,” “guidance,” “intend,” “plan,” “believe” and other words and terms of similar meaning and expression in connection with any discussion of future operating or financial performance. Important factors that could cause or contribute to such differences include risks relating to: our ability to successfully compete in the marketplace, including: that we are substantially dependent on our generic products; our ability to develop and commercialize additional pharmaceutical products; competition for our innovative medicines; our ability to achieve expected results from investments in our product pipeline; our ability to successfully execute our Pivot to Growth strategy, including to expand our innovative and biosimilar medicines pipeline and profitably commercialize the innovative medicines and biosimilar portfolio, whether organically or through business development, to sustain and focus our portfolio of generic medicines, and to execute on our organizational transformation and to achieve expected cost savings; the effectiveness of our patents and other measures to protect our intellectual property rights; our significant indebtedness, which may limit our ability to incur additional indebtedness, engage in additional transactions or make new investments; our business and operations in general; compliance, regulatory and litigation matters; other financial and economic risks; and other factors discussed in this document, in our Quarterly Report on Form 10-Q for the first quarter of 2026 and in our Annual Report on Form 10-K for the year ended December 31, 2025, including in the section captioned “Risk Factors.” Forward-looking statements speak only as of the date on which they are made, and we assume no obligation to update or revise any forward-looking statements or other information contained herein, whether as a result of new information, future events or otherwise. You are cautioned not to put undue reliance on these forward-looking statements.
On June 02, 2026, Teva Pharmaceutical Industries Ltd TEVA shares fell 4.5% to a current price of $33.08. This decline comes in the context of a 52-week trading range between $14.99 and $37.35, with a one-year increase of 91.7% still reflecting a solid performance over the longer term.
GF Value™ verdict indicates that TEVA's current price is 63.7% above its estimated fair value of $20.21.With a GF Score™ of 55/100, Teva is considered an average stock based on key performance metrics.Insider activity has seen a significant sell-off, with insiders selling $44.5 million in stock over the last three months, indicating a lack of confidence from those with the most intimate knowledge of the company. Is TEVA Overvalued or Undervalued? Teva's current share price of $33.08 significantly exceeds its GF Value™, which is estimated at $20.21. This valuation suggests that the stock is overvalued by approximately 63.7%, indicating a substantial margin of safety for potential investors if they were considering an entry point at this price. The GF Valuation label categorizes TEVA as "Significantly Overvalued," which signals a risk for investors as the stock may not justify its current price based on intrinsic value. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.
The overvaluation implies that investors are currently paying a premium for TEVA shares that may not be sustainable. This could lead to a price correction in the future, especially if the company fails to meet growth expectations or if broader market conditions change.
How Does TEVA's Valuation Compare to Its History? MetricCurrentHistorical P/E (TTM)24.9x26.9x Forward P/E14.2xN/A Teva's current P/E (TTM) of 24.9x is 7% below its 5-year median P/E of 26.9x, suggesting that while the stock is trading relatively lower than its historical valuation, it remains above the GF Value™ verdict of overvaluation. This discrepancy may indicate a mismatch between Teva's price and its historical earning potential, aligning with the conclusion that the stock is indeed overvalued according to GF Value™.
What Does TEVA's GF Score™ Tell Us? MetricRating GF Score™55 Financial Strength4/10 Profitability5/10 Growth0/10 Valuation3/10 Momentum6/10 The GF Score™ of 55/100 suggests that Teva falls into the average category concerning its potential for long-term returns. The strongest area is the Profitability rank at 5/10, while the Growth rank is notably weak at 0/10, indicating a lack of robust growth prospects. The Financial Strength rank of 4/10 also raises concerns about the company's overall stability, while the Valuation rank of 3/10 further corroborates the overvalued status indicated by the GF Value™ assessment.
What Are Insiders Doing with TEVA Stock? Recent insider activity at Teva has been predominantly bearish, with insiders selling $44.5 million worth of stock in the last three months without any reported purchases. This trend may suggest a lack of confidence in the company's future performance or stock price sustainability, often serving as a warning signal for potential investors. The absence of insider buying could imply that those with the most insight into the company's operations are not optimistic about the stock's current valuation or future prospects.
What This Means for Investors Based on the analysis of GF Value™, Teva Pharmaceutical Industries Ltd TEVA is classified as overvalued. The significant disparity between the current stock price and the estimated fair value presents potential risks for investors considering entry points at this time.
For the complete analysis, visit the Teva Pharmaceutical Industries Ltd TEVA stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is TEVA's GF Score™?
TEVA's GF Score™ is 55/100, indicating an average ranking based on key performance metrics and suggesting mixed long-term return potential.
Is TEVA overvalued or undervalued?
TEVA is overvalued, with a current price that is 63.7% above its estimated fair value according to GF Value™.
What is TEVA's P/E ratio?
TEVA's P/E (TTM) is 24.9x, which is 7% below its 5-year median P/E of 26.9x, indicating a relatively lower valuation compared to its historical trading range.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
New real-world survey data reveal the daily impact of Huntington’s disease (HD) chorea, with over 68% of patients reporting interference with social life or emotional wellbeing1 and up to 83% of caregivers noting impact on their own daily lives.2Following treatment with AUSTEDO or AUSTEDO XR, most patients (60-71%) reported improvement across multiple quality of life domains as a result of their improved movements.1 As a result of the patient’s reduced chorea impact, most caregivers reported less impact to their daily lives.2These real-world findings reinforce Teva's commitment to advancing innovative treatment options that improve the lives of individuals living with HD chorea and their caregivers. PARSIPPANY, N.J. and TEL AVIV, Israel, June 05, 2026 (GLOBE NEWSWIRE) -- Teva Pharmaceuticals, a U.S. affiliate of Teva Pharmaceutical Industries Ltd. (NYSE and TASE: TEVA), today announced new data from the first and only real-world, decentralized study evaluating the patient- and caregiver-reported quality of life impacts of Huntington’s disease (HD) chorea3 and the effect of AUSTEDO® or AUSTEDO XR® on symptom management. The findings demonstrate that treating chorea with AUSTEDO or AUSTEDO XR led to symptom improvement and, as a result, showed improvements across multiple quality of life measures.1,2 The data were presented at the Advanced Therapeutics in Movement & Related Disorders® Congress, held June 4 – 8, 2026, in Washington, DC.
“What we are seeing reinforced from these real-world data is how deeply Huntington’s disease chorea affects patients – physically, emotionally and in their ability to function day-to-day – and the strain it can place on their care partners,” said Eric Hughes, MD, PhD, Executive Vice President, Global R&D and Chief Medical Officer at Teva. “That’s why our patient-centric approach is fundamental to our work at Teva, and why we are proud to see AUSTEDO and AUSTEDO XR delivering such meaningful improvement for patients and making a real difference in the lives of those impacted.”
Self-reported HD chorea patient participants (≥18 years) in the United States completed a non-interventional, online survey through the myHDstory® platform, which included questions regarding chorea impact on quality of life, severity, current treatment and self-defined goals for management. Participants taking AUSTEDO or AUSTEDO XR completed additional questions evaluating perceived changes in burden since treatment initiation, including the Patient Global Impression of Change (PGIC) scale. Caregivers (≥18 years) of individuals with HD chorea also completed an online survey, reporting on how their care recipient’s chorea affected their own daily functioning across multiple quality of life domains.
Prior to treatment survey findings revealed:
Patients reported self-defined aspirational goals that they would like to improve with HD chorea treatment focused on their daily activities and social life. Caregivers also reported goals focused on their own wellbeing.Across the real-world survey population, patients reported HD chorea often interfered with social life (71-84%), emotional wellbeing (68-77%), daily activities (70-78%) and vocational/recreational life (67-82%).1 Caregivers also reported substantial impact across their own social functioning (73–84%), emotional wellbeing (71–84%), daily activities (81–83%) and vocational/recreational life (76-83%) due to their caregiving responsibilities.2 As a result of reduced HD chorea movements in patients treated with AUSTEDO or AUSTEDO XR, the survey findings revealed:
74% of patients reported improvements in their chorea movements since initiating treatment, measured by the PGIC scale.1As a result of movement reduction, over 85% of surveyed patients reported improvements in goals related to daily activities, such as dressing, walking and eating, and goals related to their social lives, such as going out with friends and family.177% of caregivers of patients reported improvements in goals related to their social life, such as going out on their own and emotional wellbeing, including reduced guilt, stress and emotional burden.2 “Huntington’s disease chorea extends beyond its physical symptoms, disrupting patients’ emotional wellbeing, social functioning and sense of self, while also placing immense strain on caregivers,” said Daniel Claassen, MD, MS, Professor of Neurology at Vanderbilt University Medical Center, principal investigator of the study and CEO, Huntington’s Study Group. “These real-world findings demonstrate the importance of effective chorea management to aid in preserving independence longer and alleviating those impacts for both patients and caregivers.”
The study presented, executed in collaboration with the Huntington Study Group, is the only real-world study assessing the impact of HD chorea on patients’ and caregivers’ quality of life to date.3
About Chorea Associated with Huntington’s Disease (HD)
Huntington’s disease (HD) is a fatal neurodegenerative disease characterized by uncoordinated and uncontrollable movements, cognitive deterioration and behavioral and/or psychological problems. Chorea – involuntary, random and sudden, twisting and/or writhing movements – is one of the most striking physical manifestations of Huntington’s disease and occurs in approximately 90% of patients. Chorea can have a significant impact on daily activities and progressively limit peoples’ lives.4,5
About AUSTEDO XR Extended-Release Tablets and AUSTEDO Tablets
AUSTEDO XR and AUSTEDO are the first vesicular monoamine transporter 2 (VMAT2) inhibitors approved by the U.S. Food and Drug Administration in adults for the treatment of tardive dyskinesia and for the treatment of chorea associated with Huntington’s disease. Safety and effectiveness in pediatric patients have not been established. AUSTEDO XR is the once-daily formulation of AUSTEDO.
INDICATIONS AND USAGE
AUSTEDO XR (deutetrabenazine) extended-release tablets and AUSTEDO (deutetrabenazine) tablets are indicated in adults for the treatment of chorea associated with Huntington’s disease and for the treatment of tardive dyskinesia.
IMPORTANT SAFETY INFORMATION
Depression and Suicidality in Patients with Huntington’s Disease: AUSTEDO XR and AUSTEDO can increase the risk of depression and suicidal thoughts and behavior (suicidality) in patients with Huntington’s disease. Balance the risks of depression and suicidality with the clinical need for treatment of chorea. Closely monitor patients for the emergence or worsening of depression, suicidality, or unusual changes in behavior. Inform patients, their caregivers, and families of the risk of depression and suicidality and instruct them to report behaviors of concern promptly to the treating physician. Exercise caution when treating patients with a history of depression or prior suicide attempts or ideation. AUSTEDO XR and AUSTEDO are contraindicated in patients who are suicidal, and in patients with untreated or inadequately treated depression.
Contraindications: AUSTEDO XR and AUSTEDO are contraindicated in patients with Huntington’s disease who are suicidal, or have untreated or inadequately treated depression. AUSTEDO XR and AUSTEDO are also contraindicated in: patients with hepatic impairment; patients taking reserpine or within 20 days of discontinuing reserpine; patients taking monoamine oxidase inhibitors (MAOIs), or within 14 days of discontinuing MAOI therapy; and patients taking tetrabenazine or valbenazine.
Clinical Worsening and Adverse Events in Patients with Huntington’s Disease: AUSTEDO XR and AUSTEDO may cause a worsening in mood, cognition, rigidity, and functional capacity. Prescribers should periodically re-evaluate the need for AUSTEDO XR or AUSTEDO in their patients by assessing the effect on chorea and possible adverse effects.
QTc Prolongation: AUSTEDO XR and AUSTEDO may prolong the QT interval, but the degree of QT prolongation is not clinically significant when AUSTEDO XR or AUSTEDO is administered within the recommended dosage range. AUSTEDO XR and AUSTEDO should be avoided in patients with congenital long QT syndrome and in patients with a history of cardiac arrhythmias.
Neuroleptic Malignant Syndrome (NMS), a potentially fatal symptom complex reported in association with drugs that reduce dopaminergic transmission, has been observed in patients receiving tetrabenazine. The risk may be increased by concomitant use of dopamine antagonists or antipsychotics. The management of NMS should include immediate discontinuation of AUSTEDO XR and AUSTEDO; intensive symptomatic treatment and medical monitoring; and treatment of any concomitant serious medical problems.
Akathisia, Agitation, and Restlessness: AUSTEDO XR and AUSTEDO may increase the risk of akathisia, agitation, and restlessness. The risk of akathisia may be increased by concomitant use of dopamine antagonists or antipsychotics. If a patient develops akathisia, the AUSTEDO XR or AUSTEDO dose should be reduced; some patients may require discontinuation of therapy.
Parkinsonism: AUSTEDO XR and AUSTEDO may cause parkinsonism in patients with Huntington’s disease or tardive dyskinesia. Parkinsonism has also been observed with other VMAT2 inhibitors. The risk of parkinsonism may be increased by concomitant use of dopamine antagonists or antipsychotics. If a patient develops parkinsonism, the AUSTEDO XR or AUSTEDO dose should be reduced; some patients may require discontinuation of therapy.
Sedation and Somnolence: Sedation is a common dose-limiting adverse reaction of AUSTEDO XR and AUSTEDO. Patients should not perform activities requiring mental alertness, such as operating a motor vehicle or hazardous machinery, until they are on a maintenance dose of AUSTEDO XR or AUSTEDO and know how the drug affects them. Concomitant use of alcohol or other sedating drugs may have additive effects and worsen sedation and somnolence.
Hyperprolactinemia: Tetrabenazine elevates serum prolactin concentrations in humans. If there is a clinical suspicion of symptomatic hyperprolactinemia, appropriate laboratory testing should be done and consideration should be given to discontinuation of AUSTEDO XR and AUSTEDO.
Binding to Melanin-Containing Tissues: Deutetrabenazine or its metabolites bind to melanin-containing tissues and could accumulate in these tissues over time. Prescribers should be aware of the possibility of long-term ophthalmologic effects.
Common Adverse Reactions: The most common adverse reactions for AUSTEDO (>8% and greater than placebo) in a controlled clinical study in patients with Huntington’s disease were somnolence, diarrhea, dry mouth, and fatigue. The most common adverse reactions for AUSTEDO (4% and greater than placebo) in controlled clinical studies in patients with tardive dyskinesia were nasopharyngitis and insomnia. Adverse reactions with AUSTEDO XR extended-release tablets are expected to be similar to AUSTEDO tablets.
Please see accompanying full Prescribing Information, including Boxed Warning.
About Teva
Teva Pharmaceutical Industries Ltd. (NYSE and TASE: TEVA) is transforming into a leading innovative biopharmaceutical company, enabled by a world-class generics business. For over 120 years, Teva’s commitment to bettering health has never wavered. From innovating in the fields of neuroscience and immunology to providing complex generic medicines, biosimilars and pharmacy brands worldwide, Teva is dedicated to addressing patients’ needs, now and in the future. At Teva, We Are All In For Better Health. To learn more about how, visit www.tevapharm.com.
Teva Cautionary Note Regarding Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are based on management’s current beliefs and expectations and are subject to substantial risks and uncertainties, both known and unknown, that could cause our future results, performance or achievements to differ significantly from that expressed or implied by such forward-looking statements. You can identify these forward-looking statements by the use of words such as “should,” “expect,” “anticipate,” “estimate,” “target,” “may,” “intend,” “plan,” “believe” and other words and terms of similar meaning and expression in connection with any discussion of future operating or financial performance. Important factors that could cause or contribute to such differences include risks relating to: our ability to successfully develop and commercialize AUSTEDO and AUSTEDO XR for the treatment of chorea associated with Huntington’s disease; our ability to successfully compete in the marketplace, including our ability to develop and commercialize additional pharmaceutical products; our ability to successfully execute our Pivot to Growth strategy, including to expand our innovative and biosimilar medicines pipeline and profitably commercialize the innovative medicines and biosimilar portfolio, whether organically or through business development; and other factors discussed in our Quarterly Report on Form 10-Q for the first quarter of 2026 and in our Annual Report on Form 10-K for the year ended December 31, 2025, including in the sections captioned “Risk Factors” and “Forward-Looking Statements.” Forward-looking statements speak only as of the date on which they are made, and we assume no obligation to update or revise any forward-looking statements or other information contained herein, whether as a result of new information, future events or otherwise. You are cautioned not to put undue reliance on these forward-looking statements.
References:
Claassen D, Dalrymple WA, Finkbeiner S, Klakotskaia D, Konings M, & Gandhi P, (2026, June 4–8). Patient-reported burden of Huntington disease chorea and effect of deutetrabenazine on symptom management and quality of life: Results from a real-world, decentralized study [Poster presentation]. Advanced Therapeutics in Movement & Related Disorders® Congress, Washington, DC, United States.Anderson KE, Moore HP, Finkbeiner S, Klakotskaia D, Konings M, & Gandhi P, (2026, June 4–8). A real-world, decentralized study of caregiver-reported burden of Huntington disease chorea and effect of deutetrabenazine on symptom management and quality of life [Poster presentation]. Advanced Therapeutics in Movement & Related Disorders® Congress, Washington, DC, United States.Data on file. Parsippany, NJ: Teva Neuroscience, Inc.Huntington’s Disease. National Institute of Neurological Disorders and Stroke. https://www.ninds.nih.gov/health-information/disorders/huntingtons-disease#toc-what-is-huntington-s-disease-.Thorley EM, Iyer RG, Wicks P, Curran C, Gandhi SK, Abler V, Anderson KE, Carlozzi NE. Understanding How Chorea Affects Health-Related Quality of Life in Huntington Disease: An Online Survey of Patients and Caregivers in the United States. Patient. 2018;11(5):547-559. doi: 10.1007/s40271-018-0312-x.
New analysis from the IMPACT-TD Registry demonstrates that treatment with AUSTEDO and AUSTEDO XR led to reductions in Abnormal Involuntary Movement Scale (AIMS) scores in all participants, which were associated with improved activities of daily living.Further data from the 3-year RIM-TD study reinforces the importance of sustained treatment, showing >50% of patients achieve a clinically meaningful response to AUSTEDO by week 15, with additional patients achieving response with continued treatment.The comprehensive data package presented at Psych Congress Elevate advances clinical understanding of TD from diagnosis to long-term management, underscoring Teva's commitment to improving outcomes for the full spectrum of individuals living with TD.
PARSIPPANY, N.J. and TEL AVIV, Israel, June 08, 2026 (GLOBE NEWSWIRE) -- Teva Pharmaceuticals, a U.S. affiliate of Teva Pharmaceutical Industries Ltd. (NYSE and TASE: TEVA), today announced new data that highlight the comprehensive tardive dyskinesia (TD) symptom improvement from treatment with AUSTEDO® and AUSTEDO XR®. The new findings, drawn from three separate studies, were presented at Psych Congress Elevate, held June 3 – 6, 2026, in Las Vegas, NV.
“The data presented at Psych Congress Elevate represent Teva’s pursuit to better understanding the full human experience of tardive dyskinesia,” said Eric Hughes, MD, PhD, Executive Vice President, Global R&D and Chief Medical Officer at Teva. "We are dedicated to not only advancing science but also striving to close critical gaps in diagnosis and clinical management of tardive dyskinesia. By generating robust evidence for a broader range of patients, including those with mild TD, and providing insights that guide optimal long-term treatment strategies, we are working to deliver innovations that make a meaningful difference in the day-to-day lives of those living with this condition.”
The new findings from Teva’s latest research revealed:
Benefit in Mild TD (IMPACT-TD): New real-world insights from the IMPACT-TD Registry, the largest real-world study of TD,1 evaluated patients with mild symptoms who were starting AUSTEDO or AUSTEDO XR treatment. At three months, all participants showed reductions in their Abnormal Involuntary Movement Scale (AIMS) score while maintaining their psychiatric stability; and participants with a clinically meaningful baseline burden in areas such as activities of daily living, psychosocial functioning, speech and communication reported improvement in these domains due to the reduction of TD movements.Value of Sustained Treatment (RIM-TD): An analysis from the 3-year RIM-TD open-label study found that an increasing percentage of patients responded to treatment over the course of the study. While >50% showed AIMS improvement within 15 weeks, an additional 23% saw improvement after week 15. This underscores the possibility of increasing improvement when patients stay on treatment.Closing the Diagnosis Gap: A study focused on caregiver education found that providing TD-specific educational content developed in collaboration with patient advocacy groups via online platforms prompted crucial conversations with healthcare professionals. Within six months, 53% of care recipients at risk of TD discussed TD with a provider, and 34% received a TD diagnosis, highlighting an effective strategy to improve disease recognition. "These findings are significant because they add to the real-world evidence supporting treatment benefit for patients with mild tardive dyskinesia," said Richard Jackson, MD, Assistant Clinical Adjunct Professor at the University of Michigan School of Medicine’s Department of Psychiatry and IMPACT-TD principal investigator. "In clinical practice, we know that even so-called 'mild' involuntary movements can have a profound, multidimensional impact on a person's quality of life. These data give clinicians greater confidence to identify and treat TD early, offering the potential to improve outcomes for patients who might have previously been overlooked."
Teva remains deeply committed to advancing the science of tardive dyskinesia and supporting the full needs of the TD community.
About Tardive Dyskinesia (TD)
Tardive dyskinesia (TD) is a highly debilitating, chronic movement disorder that affects one in four people who take certain mental health treatments and is characterized by uncontrollable, abnormal, and repetitive movements of the face, torso, and/or other body parts, which may be disruptive and negatively impact individuals.2,3,4
About AUSTEDO XR Extended-Release Tablets and AUSTEDO Tablets
AUSTEDO XR and AUSTEDO are the first vesicular monoamine transporter 2 (VMAT2) inhibitors approved by the U.S. Food and Drug Administration in adults for the treatment of tardive dyskinesia and for the treatment of chorea associated with Huntington’s disease. Safety and effectiveness in pediatric patients have not been established. AUSTEDO XR is the once-daily formulation of AUSTEDO.
INDICATIONS AND USAGE
AUSTEDO XR (deutetrabenazine) extended-release tablets and AUSTEDO (deutetrabenazine) tablets are indicated in adults for the treatment of chorea associated with Huntington’s disease and for the treatment of tardive dyskinesia.
IMPORTANT SAFETY INFORMATION
Depression and Suicidality in Patients with Huntington’s Disease: AUSTEDO XR and AUSTEDO can increase the risk of depression and suicidal thoughts and behavior (suicidality) in patients with Huntington’s disease. Balance the risks of depression and suicidality with the clinical need for treatment of chorea. Closely monitor patients for the emergence or worsening of depression, suicidality, or unusual changes in behavior. Inform patients, their caregivers, and families of the risk of depression and suicidality and instruct them to report behaviors of concern promptly to the treating physician. Exercise caution when treating patients with a history of depression or prior suicide attempts or ideation. AUSTEDO XR and AUSTEDO are contraindicated in patients who are suicidal, and in patients with untreated or inadequately treated depression.
Contraindications: AUSTEDO XR and AUSTEDO are contraindicated in patients with Huntington’s disease who are suicidal, or have untreated or inadequately treated depression. AUSTEDO XR and AUSTEDO are also contraindicated in: patients with hepatic impairment; patients taking reserpine or within 20 days of discontinuing reserpine; patients taking monoamine oxidase inhibitors (MAOIs), or within 14 days of discontinuing MAOI therapy; and patients taking tetrabenazine or valbenazine.
Clinical Worsening and Adverse Events in Patients with Huntington’s Disease: AUSTEDO XR and AUSTEDO may cause a worsening in mood, cognition, rigidity, and functional capacity. Prescribers should periodically re-evaluate the need for AUSTEDO XR or AUSTEDO in their patients by assessing the effect on chorea and possible adverse effects.
QTc Prolongation: AUSTEDO XR and AUSTEDO may prolong the QT interval, but the degree of QT prolongation is not clinically significant when AUSTEDO XR or AUSTEDO is administered within the recommended dosage range. AUSTEDO XR and AUSTEDO should be avoided in patients with congenital long QT syndrome and in patients with a history of cardiac arrhythmias.
Neuroleptic Malignant Syndrome (NMS), a potentially fatal symptom complex reported in association with drugs that reduce dopaminergic transmission, has been observed in patients receiving tetrabenazine. The risk may be increased by concomitant use of dopamine antagonists or antipsychotics. The management of NMS should include immediate discontinuation of AUSTEDO XR and AUSTEDO; intensive symptomatic treatment and medical monitoring; and treatment of any concomitant serious medical problems.
Akathisia, Agitation, and Restlessness: AUSTEDO XR and AUSTEDO may increase the risk of akathisia, agitation, and restlessness. The risk of akathisia may be increased by concomitant use of dopamine antagonists or antipsychotics. If a patient develops akathisia, the AUSTEDO XR or AUSTEDO dose should be reduced; some patients may require discontinuation of therapy.
Parkinsonism: AUSTEDO XR and AUSTEDO may cause parkinsonism in patients with Huntington’s disease or tardive dyskinesia. Parkinsonism has also been observed with other VMAT2 inhibitors. The risk of parkinsonism may be increased by concomitant use of dopamine antagonists or antipsychotics. If a patient develops parkinsonism, the AUSTEDO XR or AUSTEDO dose should be reduced; some patients may require discontinuation of therapy.
Sedation and Somnolence: Sedation is a common dose-limiting adverse reaction of AUSTEDO XR and AUSTEDO. Patients should not perform activities requiring mental alertness, such as operating a motor vehicle or hazardous machinery, until they are on a maintenance dose of AUSTEDO XR or AUSTEDO and know how the drug affects them. Concomitant use of alcohol or other sedating drugs may have additive effects and worsen sedation and somnolence.
Hyperprolactinemia: Tetrabenazine elevates serum prolactin concentrations in humans. If there is a clinical suspicion of symptomatic hyperprolactinemia, appropriate laboratory testing should be done and consideration should be given to discontinuation of AUSTEDO XR and AUSTEDO.
Binding to Melanin-Containing Tissues: Deutetrabenazine or its metabolites bind to melanin-containing tissues and could accumulate in these tissues over time. Prescribers should be aware of the possibility of long-term ophthalmologic effects.
Common Adverse Reactions: The most common adverse reactions for AUSTEDO (>8% and greater than placebo) in a controlled clinical study in patients with Huntington’s disease were somnolence, diarrhea, dry mouth, and fatigue. The most common adverse reactions for AUSTEDO (4% and greater than placebo) in controlled clinical studies in patients with tardive dyskinesia were nasopharyngitis and insomnia. Adverse reactions with AUSTEDO XR extended-release tablets are expected to be similar to AUSTEDO tablets.
Please see accompanying full Prescribing Information, including Boxed Warning.
About Teva
Teva Pharmaceutical Industries Ltd. (NYSE and TASE: TEVA) is transforming into a leading innovative biopharmaceutical company, enabled by a world-class generics business. For over 120 years, Teva’s commitment to bettering health has never wavered. From innovating in the fields of neuroscience and immunology to providing complex generic medicines, biosimilars and pharmacy brands worldwide, Teva is dedicated to addressing patients’ needs, now and in the future. At Teva, We Are All In For Better Health. To learn more about how, visit www.tevapharm.com.
Teva Cautionary Note Regarding Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are based on management’s current beliefs and expectations and are subject to substantial risks and uncertainties, both known and unknown, that could cause our future results, performance or achievements to differ significantly from that expressed or implied by such forward-looking statements. You can identify these forward-looking statements by the use of words such as “should,” “expect,” “anticipate,” “estimate,” “target,” “may,” “intend,” “plan,” “believe” and other words and terms of similar meaning and expression in connection with any discussion of future operating or financial performance. Important factors that could cause or contribute to such differences include risks relating to: our ability to successfully develop and commercialize AUSTEDO and AUSTEDO XR for the treatment of tardive dyskinesia; our ability to successfully compete in the marketplace, including our ability to develop and commercialize additional pharmaceutical products; our ability to successfully execute our Pivot to Growth strategy, including to expand our innovative and biosimilar medicines pipeline and profitably commercialize the innovative medicines and biosimilar portfolio, whether organically or through business development; and other factors discussed in our Quarterly Report on Form 10-Q for the first quarter of 2026 and in our Annual Report on Form 10-K for the year ended December 31, 2025, including in the sections captioned “Risk Factors” and “Forward-Looking Statements.” Forward-looking statements speak only as of the date on which they are made, and we assume no obligation to update or revise any forward-looking statements or other information contained herein, whether as a result of new information, future events or otherwise. You are cautioned not to put undue reliance on these forward-looking statements.
References:
Data on file. Parsippany, NJ: Teva Neuroscience, Inc.Carbon M, Hsieh CH, Kane JM, Correll CU. Tardive Dyskinesia Prevalence in the Period of Second-Generation Antipsychotic Use: A Meta-Analysis. J Clin Psychiatry. 2017;78(3):e264-e278. doi: 10.4088/JCP.16r10832.Waln O, Jankovic J. An Update on Tardive Dyskinesia: From Phenomenology to Treatment. Tremor Other Hyperkinet Mov. 2013;3:1-11.Tardive dyskinesia. National Alliance on Mental Illness website. https://www.nami.org/Learn-More/Treatment/Mental-Health-Medications/Tardive-Dyskinesia. Accessed May 4, 2026.
Ecopipam, an investigational asset for pediatric Tourette syndrome (TS), is a first-in-class selective dopamine D1 receptor antagonist with a novel mechanism of action and has received FDA Orphan Drug and Fast Track designations. The acquisition expands Teva’s innovative pipeline in a specialized area of neuroscience with significant unmet need and is expected to support near- and long-term growth. At closing, Teva paid $700 million consideration with the potential for up to an additional $200 million in commercial milestone payments, as well as net sales-based royalties, upon commercialization and subject to regulatory approval. TEL AVIV, Israel, June 10, 2026 (GLOBE NEWSWIRE) -- Teva Pharmaceutical Industries Ltd. (NYSE and TASE: TEVA), today announced the closing of Teva’s acquisition of Emalex Biosciences, strengthening its late-stage pipeline with ecopipam and further advancing its Pivot to Growth strategy. Phase 3 data for ecopipam were recently published in JAMA Neurology, and a U.S. NDA submission is anticipated in the second half of 2026.
“This acquisition reflects our Pivot to Growth strategy in action, advancing our innovative pipeline through focused, capital-efficient business development,” said Richard Francis, President and Chief Executive Officer of Teva. “It adds a late-stage opportunity with potential to address a significant unmet need in Tourette syndrome, and with our deep neuroscience expertise, we are well-positioned to advance this program.”
Emalex Biosciences was created by Paragon Biosciences to develop new treatments for central nervous system disorders. Emalex, supported by Paragon, advanced the asset through clinical development and compiled the NDA submission for pediatric Tourette syndrome.
About Tourette Syndrome
Tourette syndrome is a chronic neuro-developmental disorder characterized by involuntary motor and vocal tics beginning in childhood, often between 5 and 10 years of age. For people living with Tourette syndrome, symptoms can be frequent, visible, and disruptive, affecting everyday life. Current treatment approaches can help, but many patients still do not get the level of control they need, or are limited by side effects, underscoring the need for additional options.
About ecopipam
Ecopipam is a first-in-class investigational compound designed to block dopamine signaling at the D1 receptor. D1 receptor hypersensitivity may contribute to repetitive and compulsive behaviors associated with Tourette syndrome.
Ecopipam has received Orphan Drug and Fast Track designations from the FDA for the treatment of pediatric patients with Tourette syndrome. Orphan Drug designation is reserved for patient populations of 200,000 or fewer.
The Phase 3 Tourette syndrome study results were recently published in JAMA Neurology. The primary efficacy endpoint in the study was time to relapse for pediatric patients stable and responding to ecopipam then randomized to ecopipam or placebo. The study showed statistical significance between ecopipam and placebo for the primary efficacy endpoint in pediatric patients (p = 0.0084). Ecopipam was generally well-tolerated in the study and the most common adverse events related to ecopipam therapy were somnolence (10.2%), insomnia (7.4%), anxiety (6.0%), fatigue (5.6%), and headache (5.1%).
About Teva
Teva Pharmaceutical Industries Ltd. (NYSE and TASE: TEVA) is transforming into a leading innovative biopharmaceutical company, enabled by a world-class generics business. For over 120 years, Teva’s commitment to bettering health has never wavered. From innovating in the fields of neuroscience and immunology to providing complex generic medicines, biosimilars and pharmacy brands worldwide, Teva is dedicated to addressing patients’ needs, now and in the future. At Teva, We Are All In For Better Health. To learn more about how, visit www.tevapharm.com.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are based on management’s current beliefs and expectations and are subject to substantial risks and uncertainties, both known and unknown, that could cause Teva’s future results, performance or achievements to differ significantly from that expressed or implied by such forward-looking statements.
All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. In some cases, you can identify these forward-looking statements by the use of words such as “should,” “expect,” “anticipate,” “developing,” “target,” “may,” “expand,” “intend,” “plan,” “believe” and other words and terms of similar meaning and expression in connection with any discussion of future performance. Important factors that could cause or contribute to such differences include risks and uncertainties relating to: our ability to successfully meet the payment obligations under the acquisition agreement of Emalex; our ability to successfully develop, obtain regulatory approval for and commercialize ecopipam; our ability to successfully compete in the marketplace including our ability to develop and commercialize ecopipam and additional pharmaceutical products; our ability to successfully execute our Pivot to Growth strategy, including to expand our innovative and biosimilar medicines pipeline and profitably commercialize the innovative medicines and biosimilar portfolio, whether organically or through business development, and to execute on our organizational transformation and to achieve expected cost savings; our significant indebtedness, which may limit our ability to incur additional indebtedness, engage in additional transactions or make new investments; and other factors discussed in this press release and in our Quarterly Report on Form 10-Q for the first quarter of 2026 and in our Annual Report on Form 10-K for the year ended December 31, 2025, including in the section captioned “Risk Factors” and “Cautionary Note Regarding Forward Looking Statements.”
Forward-looking statements speak only as of the date on which they are made, and we assume no obligation to update or revise any forward-looking statements or other information contained herein, whether as a result of new information, future events or otherwise. You are cautioned not to put undue reliance on these forward-looking statements.
Agreement highlights Paragon’s ability to build companies around important science, advance registration-ready assets, and deliver value through strategic transactions
CHICAGO--(BUSINESS WIRE)--Paragon Biosciences today announced the closing of the sale of Emalex Biosciences to Teva Pharmaceutical, reinforcing Paragon's ability to build innovative biotechnology companies that deliver important treatments to the patients who need them.
"Building companies that translate scientific breakthroughs into medicines for patients is the foundation of Paragon's mission," said Jeff Aronin, Paragon Biosciences founder and CEO.
Share Emalex is another Paragon Biosciences-founded company built to develop a novel class of treatment for patients with central nervous system disorders, following in the footsteps of other successful Paragon companies such as Harmony Biosciences (NASDAQ: HRMY). Ecopipam, an investigational compound, was developed by Emalex for Tourette syndrome, a neurodevelopmental disorder that can significantly affect daily life for patients and families.
Paragon, supporting Emalex, advanced the drug through clinical development and the compilation of the NDA that will be submitted in the second half of 2026. The acquisition by Teva comprises $700 million in cash and up to $200 million in commercial milestone payments as well as net-sales-based royalties, subject to regulatory approval.
"This transaction is a testament to the talent, perseverance and vision of the Paragon and Emalex teams. Together, they transformed promising science into a registration-ready program with the potential to become the first new treatment option for Tourette syndrome in over a decade. Their work demonstrates the power of focused innovation to address diseases that have been underserved for far too long,” said Jeff Aronin, Paragon Biosciences founder and CEO.
“Building companies that translate scientific breakthroughs into medicines for patients is the foundation of Paragon's mission. From CNS disorders to rare diseases, we continue to identify important unmet needs, assemble exceptional teams and advance therapies that have the potential to change lives. We are incredibly proud of what the Emalex team has accomplished and excited to see ecopipam move into its next chapter,” Aronin added.
Phase 3 results published in JAMA Neurology showed that ecopipam reduced time to relapse compared to placebo and maintained clinically meaningful tic improvement in subjects with Tourette syndrome.
Ecopipam remains investigational and has not been approved by the U.S. Food and Drug Administration.
“Emalex reflects what Paragon does best, building companies with discipline, urgency and a clear path from scientific insight to patient impact,” said Eric Messner, chief executive officer of Emalex Biosciences. “From the beginning, the team focused on rigorous clinical execution and a significant unmet need. With the transaction now closed, ecopipam is positioned for its next stage as it approaches planned regulatory submission and, if approved, potential access for patients.”
About Ecopipam
Ecopipam is a first-in-class investigational compound designed to block dopamine signaling at the D1 receptor. D1 receptor hypersensitivity may contribute to repetitive and compulsive behaviors associated with Tourette syndrome.
Ecopipam has received Orphan Drug and Fast Track designations from the FDA for the treatment of pediatric patients with Tourette syndrome. Orphan Drug designation is reserved for patient populations of 200,000 or fewer.
The Phase 3 Tourette syndrome study results were recently published in JAMA Neurology. The primary efficacy endpoint in the study was time to relapse for pediatric patients stable and responding to ecopipam then randomized to ecopipam or placebo. The study showed statistical significance between ecopipam and placebo for the primary efficacy endpoint in pediatric patients (p = 0.0084).
Ecopipam was generally well-tolerated in the study and the most common adverse events related to ecopipam therapy were somnolence (10.2%), insomnia (7.4%), anxiety (6.0%), fatigue (5.6%), and headache (5.1%).
About Paragon Biosciences
Paragon Biosciences, founded by Jeff Aronin, creates, builds and funds innovative biology-based companies. Its portfolio companies advance scientific breakthroughs aimed at addressing significant unmet medical needs. Learn more at paragonbiosciences.com.
Teva Pharmaceutical Industries (TEVA +0.20%) has clawed back from the brink like few drugmakers have. After a long stretch of poor performance, a company once buried under debt, patent cliffs, and litigation is now up by 97% in the last 12 months. The bull case credits its expanding biosimilars lineup, and that quickly growing segment could mean the stock has more room to run.
Still, a recently risen share price and a growing product line are not the same as a stock worth buying today. Will biosimilars truly move the needle for a business this size? Is the easy money already made, or is there more to come? Let's find out.
Image source: Getty Images.
What the biosimilar build-out will accomplish If you aren't familiar, a biosimilar drug is a near-copy of a biologic medicine like an antibody or protein. Unlike generic medicines that are small molecules which can be synthesized fairly inexpensively at scale, biosimilars are almost always quite costly and fairly slow to make, which is why Teva sources most of its biosimilars through a biotech partner, Alvotech, that develops and manufactures them while Teva handles commercialization in the U.S.
That means that Teva captures only a slice of the proceeds in a category that's characterized by narrow margins and a high degree of competition based around providing lower prices. In other words, biosimilars launch at steep discounts to their branded equivalents by necessity and then are forced to erode further with each new entrant.
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The copies of AbbVie's Humira are the cautionary tale to know here. Uptake crawled for over a year until pharmacy-benefit managers (PBMs) swapped in versions priced far below the brand name medicine. Even so, the Humira copies took only about 21% of volume by late 2024, and Teva's biosimilar Selarsdi now battles a handful of rivals for what's left of the pie.
As for what's already approved and what's coming, Teva has two Alvotech-partnered biosimilars on the U.S. market so far: Simlandi, its copy of Humira, which launched in May 2024, and Selarsdi, its Stelara copy, which followed in February 2025. Three more are working through the the U.S. Food and Drug Administration (FDA). Proposed biosimilars to the inflammatory-disease drug Simponi and the eye drug Eylea were resubmitted in June 2026 and are under a six-month review, while a proposed interchangeable biosimilar to the bowel-disease drug Entyvio was accepted for review that same month.
On that note, Teva expects its biosimilars business to roughly double to around $800 million by 2027.
The real comeback is elsewhere So if biosimilars aren't the story of Teva's resurgence, what is?
In short, the rebound is currently running on Teva's branded drugs, led by Austedo, which is prescribed for the involuntary movements of tardive dyskinesia and Huntington's disease and reached about $2.3 billion in sales in 2025, with smaller contributions from Ajovy for migraine and Uzedy for schizophrenia.
The issue with buying this stock now, in hopes of riding its future growth, is that Teva presently trades around 25 times its trailing price-to-earnings (P/E) ratio, which is a fair price for a specialty drugmaker and not really a bargain. The formerly distressed valuation that made this stock an easy win is long gone; its 2026 revenue is set to be flat to lower.
The turnaround is ongoing, and it will probably continue. Nonetheless, investors have bet on Teva's promise of cheap, efficient scale of generic medicines before and been punished for it, and with the easy rerating spent, the pharma industry offers better opportunities for growth elsewhere. This one is worth watching but not buying.
Key Takeaways Visa's payment, cross-border and processed transaction volumes continued growing in Q2.Stablecoin-linked payment volume surges as Visa expands blockchain settlement capabilities.Strong earnings growth forecasts and buybacks support the investment case. Over the past year, Visa Inc.'s (V - Free Report) stock has declined 13.8%, but it has outperformed both the broader industry and key peer Mastercard Incorporated (MA - Free Report) , which fell 25% and 18.2%, respectively. Still, the shares have badly trailed the S&P 500's 31.2% gain, a rally driven largely by mega-cap technology and artificial intelligence names.Another key peer, American Express Company (AXP - Free Report) ,gained 5.1% over the same period.
Visa continues to deliver steady revenue growth, expanding margins and strong shareholder returns, yet investors remain focused on regulatory risks and the possibility that new payment technologies could eventually weaken/disrupt its dominance.
Visa One-Year Price Performance Comparison Image Source: Zacks Investment Research
The Regulatory Cloud Won't Go AwayVisa's biggest challenge is not operational. It is political and regulatory.
In the United States, the Department of Justice has accused Visa and Mastercard of using their market positions to maintain elevated merchant fees. At the same time, the proposed Credit Card Competition Act remains a source of uncertainty. The bill has bipartisan support and backing from the White House, keeping it firmly on investors' radar. However, despite the attention, it has yet to gain meaningful legislative traction.
Europe presents another area of concern.
In June 2025, the Competition Appeal Tribunal in London ruled that Visa and Mastercard's multilateral interchange fees breached European competition law. Britain's Payment Systems Regulator is also considering a reporting framework that would require greater disclosure of the companies' U.K. operations. If adopted, regulators would gain a clearer view of profitability, potentially strengthening the case for future pricing intervention.
Several U.K. banks are exploring domestic payment alternatives that could gradually reduce reliance on U.S.-based card networks. Meanwhile, the European Central Bank continues developing the digital euro, a project aimed in part at reducing Europe's dependence on foreign payment infrastructure. Consumers would access the system through banks and digital wallets, while the ECB would provide the underlying network.
Competition is EvolvingFintech firms continue searching for ways to lower payment costs and reshape transaction economics. At the same time, real-time payment systems and upgraded bank networks are becoming faster and more capable. The more alternatives that emerge, the harder it becomes for Visa to justify premium pricing over the long term. Both Visa and Mastercard maintain that higher fees support investments in cybersecurity, fraud prevention and network reliability.
Stablecoins represent another potential challenge. If major retailers or technology companies eventually build large-scale payment ecosystems around digital currencies, some transactions could bypass traditional card networks altogether. While that risk remains largely theoretical today, it is one investors cannot completely ignore.
The Numbers Keep Telling a Different StoryFor years, Visa has faced predictions that newer technologies would weaken its position. Yet the company's operating results continue to suggest otherwise.
Visa benefits from a simple but powerful business model. Whether consumers spend on travel, groceries, dining, subscriptions or online shopping, Visa earns a fee for facilitating transactions. It does not need to predict where spending shifts. It simply needs spending to occur.
This model remained highly effective during the second quarter of fiscal 2026. On a constant-dollar basis, cross-border volume increased 12%, supported by healthy international travel and continued strength in global e-commerce. Payment volume rose 9%, while processed transactions climbed 9% to 66.1 billion. Net revenues increased 17% year over year to $11.23 billion.
Value-Added Services (VAS) remain a fast-growing business and provide diversification benefits. Revenues from the segment rose 27% in constant dollars to $3.3 billion and now account for roughly 30% of total net revenues. Growth was driven by strong demand for network products and marketing services, areas that typically generate attractive margins while strengthening client relationships.
Visa is turning disruption into opportunity.
One of the more interesting developments is Visa's approach to stablecoins. Rather than treating digital assets as a threat, the company is working to position itself as the infrastructure layer connecting traditional finance with blockchain-based payment systems. Management has avoided making aggressive claims about stablecoins becoming a mainstream consumer payment method anytime soon. Even so, adoption trends are moving in Visa's favor.
During the second quarter of fiscal 2026, its stablecoin-linked card payment volumes surged nearly 200% from the prior year, supported by more than 160 programs globally. Its stablecoin settlement business has also gained traction. Visa reported a $7 billion annual run rate, representing more than 50% sequential growth. In April 2026, the company expanded its stablecoin settlement pilot to support nine blockchain networks, broadening its reach and increasing flexibility for partners. Rather than being displaced by emerging payment technologies, Visa increasingly appears to be embedding itself within them.
Shareholder Returns Remain a PriorityVisa continues to return substantial amounts of capital to shareholders. During the last reported quarter, the company returned $9.2 billion to shareholders, including $7.9 billion in buybacks and $1.3 billion in dividends. Management also authorized a new $20 billion multi-year repurchase program in April, reinforcing confidence in the company's long-term outlook.
Visa's dividend yield currently stands at 0.85%, modestly above Mastercard's 0.73%, though below American Express' 1.22%.
Visa’s Estimates Keep Moving HigherFor fiscal 2026, Visa’s EPS is now projected at $13.09, implying 14.1% year-over-year growth. For fiscal 2027, the estimate has moved up to $14.81, pointing to another 13.1% increase. Revenue expectations are moving higher, too. Analysts now forecast $45.35 billion in fiscal 2026 revenues and $50.04 billion in fiscal 2027, indicating growth of 13.4% and 10.3%, respectively.
Visa has beaten EPS estimates in each of the past four quarters, with an average surprise of 3.2%.
Premium Valuation, Proven BusinessVisa is not cheap. The stock trades at 22.27X forward earnings, well above the industry average of 15.75X. However, the valuation sits below the company's five-year median of 25.93X. Investors are still willing to pay a premium for Visa because few businesses combine its scale, profitability, global reach and consistency. For comparison, Mastercard trades at 22.87X forward earnings, while American Express trades at 16.68X.
Image Source: Zacks Investment Research
Should Investors Buy Visa Stock?Visa continues to face regulatory scrutiny in the United States and Europe, while fintechs, real-time payment networks and stablecoins are working to reshape the payments landscape. These risks are real and help explain why the stock has lagged the broader market.
However, Visa's fundamentals remain strong. Payment volumes are growing, cross-border spending remains healthy, Value-Added Services are expanding rapidly, and the company is increasingly positioning itself within emerging payment technologies. Meanwhile, earnings estimates continue to move higher, supported by consistent execution.
While regulatory and competitive pressures are unlikely to fade, Visa's scale, network advantages and proven ability to adapt keep it well positioned for long-term growth. Supported by positive estimate revisions, Visa currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the latest close session, American Express (AXP - Free Report) was down 3.34% at $300.57. The stock's performance was behind the S&P 500's daily loss of 0.74%. At the same time, the Dow lost 1.21%, and the tech-heavy Nasdaq lost 0.89%.
The credit card issuer and global payments company's stock has dropped by 1.58% in the past month, falling short of the Finance sector's gain of 1.17% and the S&P 500's gain of 5.39%.
The investment community will be closely monitoring the performance of American Express in its forthcoming earnings report. The company is scheduled to release its earnings on July 24, 2026. The company is forecasted to report an EPS of $4.39, showcasing a 7.6% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $19.54 billion, showing a 9.45% escalation compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $17.59 per share and a revenue of $79.04 billion, signifying shifts of +14.37% and +9.43%, respectively, from the last year.
Investors should also pay attention to any latest changes in analyst estimates for American Express. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Currently, American Express is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, American Express is presently being traded at a Forward P/E ratio of 17.68. This denotes a premium relative to the industry average Forward P/E of 10.46.
It is also worth noting that AXP currently has a PEG ratio of 1.26. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Financial - Miscellaneous Services industry stood at 1 at the close of the market yesterday.
The Financial - Miscellaneous Services industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 104, placing it within the top 43% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Berkshire Hathaway has always had a diversified portfolio, but it's typically been top-heavy. That's still true today. Its top two holdings are Apple (AAPL 1.52%) and American Express (AXP +2.18%), which account for 21.4% and 14.5% of its portfolio, respectively.
Simply copying a trillion-dollar corporation is a potential strategy for the average investor, but with Berkshire committing nearly 36% of its portfolio to two stocks, is that a sign you should be all in on them, too?
If you're a fan of Warren Buffett's wisdom, then absolutely.
Image source: Getty Images.
You can't put a price on a premium brand Informed investors know Buffett was a fan of undervalued, cash-flow-heavy businesses, but he also looked for companies with a premium brand. To Buffett, a power brand was a competitive advantage because it created customer loyalty and the ability to charge a premium.
Both Apple and American Express have premium brands that set them apart from their competitors. Owning Apple products has become a lifestyle choice, and most people won't jump ship once they join Apple's ecosystem. Owning an American Express card is a status symbol for a certain level of success.
These things alone don't make them great businesses, but it usually takes great businesses to get to those points.
The biggest brand in technology Few brands have a loyal customer base quite like Apple's. Although its product line hasn't changed meaningfully in years, it's still a major cash cow thanks to repeat customers and high margins. In just its most recent quarter, the company generated $111.2 billion in revenue, up 17% year over year. More than 51% of that came just from iPhone sales.
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Part of having a premium brand is having higher pricing power. When the iPhone was released, its two models were priced at $499 and $599. Today, the iPhone 17 Pro pricing starts at $1,099. When you have a premium brand, you can charge premium prices, and Apple has leaned into that.
The company has also done a great job of pairing its beloved hardware with a services ecosystem that complements it well. Whether it's iCloud, Apple Pay, or other services, once you're locked into the ecosystem, the switching costs aren't worth it in many cases.
The luxury credit card company Unlike companies like Visa and Mastercard, American Express runs a closed-loop network. While Visa and Mastercard only operate their payment networks, American Express issues its own cards and runs its payment network. This requires the company to take on more debt obligations, but it also allows it to get a piece of the transaction at every step.
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American Express' main appeal is the perks and luxury benefits that come with its cards. That's why it can charge hundreds in annual fees. Its Platinum card costs cardholders $895 annually, which is close to a rent payment for many people in the U.S.
People are willing to pay American Express' fees for the premium perks (especially travel-related ones). The company has done a great job of turning a credit choice into a "lifestyle" choice. It attracts high-earning customers who can still stick around for the long haul.
Both stocks are good purchases for long-term investors.
American Express is an advertising partner of Motley Fool Money. Stefon Walters has positions in Apple and Visa. The Motley Fool has positions in and recommends American Express, Apple, Berkshire Hathaway, Mastercard, and Visa. The Motley Fool has a disclosure policy.
NEW YORK--(BUSINESS WIRE)--American Express® (NYSE: AXP) and Delta Air Lines® (NYSE: DAL) today introduced new travel benefits for eligible Delta SkyMiles® Card Members, along with refreshed Card designs across the full portfolio and welcome offers for new Card Members, adding more value with no increase to the annual fee.
Starting today, Basic Delta SkyMiles® Gold, Platinum and Reserve Consumer and Business Card Members will receive a complimentary second checked bag on domestic Delta-operated flights. Nearly two-thirds (63%) of travelers* say they spend more time deciding what to pack than planning their actual trip and 41% of small business travelers** say they would pack more outfit options if they had a second free checked bag — underscoring how thoughtful benefits can help make the travel experience easier at every stage of the trip.
Additionally, enrolled Delta SkyMiles Gold and Gold Business Card Members will have access to the $120 annual Rideshare Credit after Card renewal, unlocking up to $10 in monthly statement credits on eligible U.S. rideshare purchases with select providers. Together, these updates are designed to make travel more rewarding at every step — from getting to the airport to packing for a trip — while helping eligible Card Members get more from their Card.
In celebration of the 30th anniversary of the Delta SkyMiles® American Express partnership, the new benefit enhancements are complemented by updated Card designs, including a new Slate Grey option for Reserve and Reserve Business Cards.
“This is what our partnership with Delta does best: bringing together our strengths to deliver more value across the full travel journey,” said Jon Gantman, Executive Vice President - Cobrand Products & New Product Development at American Express. “From getting to the airport to stepping on the plane, we’ve worked together to add meaningful benefits like rideshare credits and a second checked bag — so our shared Card Members get more value along the way, without increasing annual fees.”
“Over 30 years, Delta’s partnership with American Express has grown into one of the industry’s strongest because it’s grounded in what customers value — premium experiences and real, everyday benefits,” said Dwight James, Senior Vice President - Customer Engagement & Loyalty for Delta and CEO - Delta Vacations. “Together, we’ll keep evolving the Card experience in ways that make travel feel simpler and deliver real value to our Members in the moments that matter.”
Limited-Time Welcome Offers
Beginning today, new Delta SkyMiles American Express Card Members can earn additional miles through limited-time offers when they apply and are approved by July 15, 2026:
New Delta SkyMiles Gold American Express Card Members can earn 70,000 bonus miles after spending $3,000 in purchases on their Card in the first six months of Card Membership, plus an additional 20,000 bonus miles after spending an additional $2,000 in purchases on their Card in the first six months of Card Membership. New Delta SkyMiles Platinum American Express Card Members can earn 80,000 bonus miles after spending $4,000 in purchases on their Card in the first six months of Card Membership, plus an additional 20,000 bonus miles after spending an additional $2,000 in purchases on their Card in the first six months of Card Membership. New Delta SkyMiles Reserve American Express Card Members can earn 100,000 bonus miles after spending $6,000 in purchases on their Card in the first six months of Card Membership, plus an additional 25,000 bonus miles after spending an additional $3,000 in purchases on their Card in the first six months of Card Membership. New Delta SkyMiles Gold Business American Express Card Members can earn 90,000 bonus miles after spending $6,000 in purchases on their Card in the first six months of Card Membership. New Delta SkyMiles Platinum Business American Express Card Members can earn 100,000 bonus miles after spending $8,000 in purchases on their Card in the first six months of Card Membership. New Delta SkyMiles Reserve Business American Express Card Members can earn 125,000 bonus miles after spending $15,000 in purchases on their Card in the first six months of Card Membership. Terms and conditions apply. Learn more about the Delta SkyMiles American Express Cards and the Delta SkyMiles Business American Express Cards.
*Methodology: This poll was conducted from May 14–19, 2026 among 2,004 adults with an HHI greater than $50,000 and who travel by plane at least once a year. The interviews were conducted online and the data were weighted to approximate a target sample of adults based on gender, age, race, educational attainment and region. Results from the full survey have a margin of error of plus or minus two percentage points.
** Methodology: This poll was conducted from May 14–26, 2026 among 501 small business owners who travel by plane at least once per year with fewer than 500 employees. The interviews were conducted online and the data were weighted to approximate a target sample of adults based on company size, industry and region. Results from the full survey have a margin of error of plus or minus four percentage points.
ABOUT AMERICAN EXPRESS
American Express (NYSE: AXP) is a global payments and premium lifestyle brand powered by technology. Our colleagues around the world back our customers with differentiated products, services, and experiences that enrich lives and build business success.
Founded in 1850 and headquartered in New York, American Express’ brand is built on trust, security, service, and a rich history of delivering innovation and Membership value for our customers. We seek to provide the world’s best customer experience every day to a broad range of consumers, small and medium-sized businesses, and large corporations, and we build and manage relationships with millions of merchants across our global network.
For more information about American Express, visit americanexpress.com, americanexpress.com/en-us/newsroom/, and ir.americanexpress.com.
ABOUT DELTA AIR LINES
Delta Air Lines, Inc. (NYSE: DAL) is the U.S. global airline leader in safety, innovation, reliability and customer experience. Powered by its people around the world, Delta operates a leading domestic and international network, connecting customers to more than 290 destinations across six continents. Delta is committed to making air travel more sustainable through industry‑leading environmental initiatives and investments, and to creating an inclusive, welcoming experience for all customers. With a focus on innovation and operational excellence, Delta is shaping the future of travel for generations to come.
American Express and Delta Air Lines are adding new perks to their cobranded credit cards just ahead of the busy summer travel season, including a benefit frequent Delta flyers have long wanted: a second free checked bag.
The two companies announced Thursday that several Delta SkyMiles American Express cards will receive updated travel perks, refreshed card designs, and limited-time welcome bonuses for new applicants. Notably, the changes come without an increase to annual fees.
The update also marks 30 years of partnership between Delta and American Express.
A bigger push into travel perksThe headline addition is a complimentary second checked bag on U.S. domestic Delta-operated flights for Delta SkyMiles Gold, Platinum, and Reserve consumer and business cardholders.
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Delta and Amex are positioning the update as a convenience play for travelers navigating increasingly crowded airports and packed summer schedules.
[Photo: American Express and Delta]“After three decades of working together, we’ve learned that the future of travel benefits isn’t just more perks, it’s less friction,” Jon Gantman, executive VP of Cobrand Products & New Product Development at American Express, tells Fast Company. “Whether it’s getting to the airport, packing for a trip, or managing the logistics in between, we’re focused on creating benefits that fit naturally into how people travel today and make every step of the journey feel a little easier.”
According to a new study commissioned by the companies, 63% of travelers say they spend more time deciding what to pack than planning the actual trip. Meanwhile, 64% of Gen Z travelers say they’ve left important items at home at least occasionally just to avoid checking a bag.
Warren Buffett is known for his long-term investing strategy, and his method led Berkshire Hathaway to six decades of market-beating performance. One key component is buying shares of quality companies that have the ability and desire to reward their shareholders with passive income. Buffett likes these dividend stocks, particularly those that stick to it over the years and even increase the payments.
The billionaire has held two in particular for many years, and it's proven to be a winning bet for him as well as for Berkshire Hathaway shareholders. Though Buffett retired and handed the investing responsibilities over to Greg Abel at the start of this year, these stocks remain at the heart of the portfolio. And this could continue, as Abel has expressed his interest in following Buffett's investing principles.
Let's check out these two Warren Buffett dividend stocks, which remain excellent buys today.
Image source: The Motley Fool.
1. Coca-Cola Coca-Cola (KO +0.11%) almost needs no introduction. The company is present in more than 200 countries and serves up a variety of beverages that are household names, from its eponymous drink to Minute Maid juices, Fuze tea, and Dasani water. The world's biggest nonalcoholic beverage maker has a solid brand moat, or competitive advantage, offering classics that consumers love -- Buffett is a big fan of companies with strong moats. And Coca-Cola has also adapted to developing tastes and the needs of individual markets. All of that has helped the beverage giant build a long track record of earnings growth.
And this earnings strength, with high levels of free cash flow, means Coca-Cola has the financial power to offer dividends and dividend growth.
KO Free Cash Flow data by YCharts
Since Coca-Cola has raised its dividend for more than 50 years, making it a Dividend King, dividend growth is clearly a priority for the company -- and this suggests the beverage company may continue along the same path. Coca-Cola pays a dividend of $2.12, representing a dividend yield of 2.7%. And over time, this could add significantly to your investment winnings. Right now, trading for 24x forward earnings estimates, Coca-Cola is reasonably priced, making it an excellent Buffett-approved buy.
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2. American Express American Express (AXP +2.18%) is a payment card giant, and what makes it particularly interesting in any market environment is the fact that it primarily serves high-income individuals. This makes the company less vulnerable to economic downturns and various uncertainties.
The company has seen earnings continue to climb, and in the recent quarter, both revenue and earnings per share advanced in the double digits. Importantly, card member spending, with 9% growth, marked its best performance in three years. I also like the fact that 66% of new accounts acquired were from Millennial and Gen Z consumers, showing younger people are choosing American Express. This suggests growth may continue in the years to come.
Buffett has been a longtime investor in American Express and has expressed his appreciation for its dividend payments. From 1995, when Berkshire Hathaway completed its American Express purchase, to 2022, Berkshire Hathaway's annual dividends from the company grew from $41 million to $302 million, Buffett wrote in a letter to shareholders, adding "those checks... seem highly likely to increase."
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And like Coca-Cola, American Express has the financial strength to continue paying and increasing its dividend. The company today pays a dividend of $3.80, representing a dividend yield of 1.2%.
Today, American Express also offers investors an interesting buying opportunity. The stock trades for 17x forward earnings estimates, down from more than 24x estimates at the end of last year. This is a very reasonable price for a company with a well-established market position, ongoing growth, and a commitment to dividend payments. American Express increased its quarterly dividend payments by 58% over the past three years. All of this makes this Warren Buffett dividend favorite a fantastic stock to buy right now.
American Express® (NYSE: AXP) and Delta Air Lines® (NYSE: DAL) today introduced new travel benefits for eligible Delta SkyMiles® Card Members, along with refreshed Card designs across the full portfolio and welcome offers for new Card Members, adding more value with no increase to the annual fee.
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260604750347/en/
New Delta SkyMiles® Reserve American Express Card Designs
Starting today, Basic Delta SkyMiles® Gold, Platinum and Reserve Consumer and Business Card Members will receive a complimentary second checked bag on domestic Delta-operated flights. Nearly two-thirds (63%) of travelers* say they spend more time deciding what to pack than planning their actual trip and 41% of small business travelers** say they would pack more outfit options if they had a second free checked bag — underscoring how thoughtful benefits can help make the travel experience easier at every stage of the trip.
Additionally, enrolled Delta SkyMiles Gold and Gold Business Card Members will have access to the $120 annual Rideshare Credit after Card renewal, unlocking up to $10 in monthly statement credits on eligible U.S. rideshare purchases with select providers. Together, these updates are designed to make travel more rewarding at every step — from getting to the airport to packing for a trip — while helping eligible Card Members get more from their Card.
In celebration of the 30th anniversary of the Delta SkyMiles® American Express partnership, the new benefit enhancements are complemented by updated Card designs, including a new Slate Grey option for Reserve and Reserve Business Cards.
“This is what our partnership with Delta does best: bringing together our strengths to deliver more value across the full travel journey,” said Jon Gantman, Executive Vice President - Cobrand Products & New Product Development at American Express. “From getting to the airport to stepping on the plane, we’ve worked together to add meaningful benefits like rideshare credits and a second checked bag — so our shared Card Members get more value along the way, without increasing annual fees.”
“Over 30 years, Delta’s partnership with American Express has grown into one of the industry’s strongest because it’s grounded in what customers value — premium experiences and real, everyday benefits,” said Dwight James, Senior Vice President - Customer Engagement & Loyalty for Delta and CEO - Delta Vacations. “Together, we’ll keep evolving the Card experience in ways that make travel feel simpler and deliver real value to our Members in the moments that matter.”
Limited-Time Welcome Offers
Beginning today, new Delta SkyMiles American Express Card Members can earn additional miles through limited-time offers when they apply and are approved by July 15, 2026:
New Delta SkyMiles Gold American Express Card Members can earn 70,000 bonus miles after spending $3,000 in purchases on their Card in the first six months of Card Membership, plus an additional 20,000 bonus miles after spending an additional $2,000 in purchases on their Card in the first six months of Card Membership. New Delta SkyMiles Platinum American Express Card Members can earn 80,000 bonus miles after spending $4,000 in purchases on their Card in the first six months of Card Membership, plus an additional 20,000 bonus miles after spending an additional $2,000 in purchases on their Card in the first six months of Card Membership. New Delta SkyMiles Reserve American Express Card Members can earn 100,000 bonus miles after spending $6,000 in purchases on their Card in the first six months of Card Membership, plus an additional 25,000 bonus miles after spending an additional $3,000 in purchases on their Card in the first six months of Card Membership. New Delta SkyMiles Gold Business American Express Card Members can earn 90,000 bonus miles after spending $6,000 in purchases on their Card in the first six months of Card Membership. New Delta SkyMiles Platinum Business American Express Card Members can earn 100,000 bonus miles after spending $8,000 in purchases on their Card in the first six months of Card Membership. New Delta SkyMiles Reserve Business American Express Card Members can earn 125,000 bonus miles after spending $15,000 in purchases on their Card in the first six months of Card Membership. Terms and conditions apply. Learn more about the Delta SkyMiles American Express Cards and the Delta SkyMiles Business American Express Cards.
*Methodology: This poll was conducted from May 14–19, 2026 among 2,004 adults with an HHI greater than $50,000 and who travel by plane at least once a year. The interviews were conducted online and the data were weighted to approximate a target sample of adults based on gender, age, race, educational attainment and region. Results from the full survey have a margin of error of plus or minus two percentage points.
** Methodology: This poll was conducted from May 14–26, 2026 among 501 small business owners who travel by plane at least once per year with fewer than 500 employees. The interviews were conducted online and the data were weighted to approximate a target sample of adults based on company size, industry and region. Results from the full survey have a margin of error of plus or minus four percentage points.
ABOUT AMERICAN EXPRESS
American Express (NYSE: AXP) is a global payments and premium lifestyle brand powered by technology. Our colleagues around the world back our customers with differentiated products, services, and experiences that enrich lives and build business success.
Founded in 1850 and headquartered in New York, American Express’ brand is built on trust, security, service, and a rich history of delivering innovation and Membership value for our customers. We seek to provide the world’s best customer experience every day to a broad range of consumers, small and medium-sized businesses, and large corporations, and we build and manage relationships with millions of merchants across our global network.
For more information about American Express, visit americanexpress.com, americanexpress.com/en-us/newsroom/, and ir.americanexpress.com.
ABOUT DELTA AIR LINES
Delta Air Lines, Inc. (NYSE: DAL) is the U.S. global airline leader in safety, innovation, reliability and customer experience. Powered by its people around the world, Delta operates a leading domestic and international network, connecting customers to more than 290 destinations across six continents. Delta is committed to making air travel more sustainable through industry‑leading environmental initiatives and investments, and to creating an inclusive, welcoming experience for all customers. With a focus on innovation and operational excellence, Delta is shaping the future of travel for generations to come.
Location: U.S.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260604750347/en/
This year hasn't been a smooth ride for American Express (AXP +2.18%) investors. The credit card company's shares are down about 16% in 2026, lagging the overall S&P 500 index by a wide margin.
But investors shouldn't let the financial stock's disappointing performance overshadow its underlying fundamental strength. American Express saw its billed business, a measure of card spending, jump 10% year over year in the first quarter. This was the fastest pace of growth in three years.
Can affluent consumers keep it up and continue driving the company's success?
Image source: The Motley Fool.
Spending activity remains strong During the three-month period that ended March 31, American Express reported billed business of $428 billion. Of note, retail spending overall increased 11%, while spending at luxury retail merchants was up 18%. These trends clearly aren't representative of typical consumer behavior, as many households are concerned about the state of the economy right now.
Attention should go to the Platinum Card, which posted an acceleration in spending growth during Q1. The leadership team highlighted strong retention rates, even with a higher annual fee being introduced last year.
And across the entire product portfolio, 73% of new card accounts were for fee-paying products. There remains robust demand for American Express's premium offerings, especially among the Millennial and Gen Z cohorts.
Today's Change
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Inflation continues to be a notable macro story The Consumer Price Index rose 3.8% year over year in April, a nearly three-year high. Consequently, the biggest question shareholders probably have, particularly for a company that's dependent on the health of the consumer, centers around the impact of inflation on the spending behavior of American Express's card members.
In 2022, the last time inflation was surging, American Express registered year-over-year growth in billed business of 25%, leading to a 25% net revenue gain. Inflation these days isn't nearly at the same level as it was earlier this decade.
"While the macro and geopolitical environment remains uncertain, we believe we are well positioned to continue delivering strong results given our focus on premium customers, our spend‑ and fee‑centric model, and very strong portfolio quality," said CEO Stephen Squeri on the Q1 2026 earnings call.
That portfolio quality is supported by a net write-off rate of 2% in the first quarter. This was an improvement from 2.1% in the year-ago period.
For now, investors should have confidence that the fundamentals will remain intact. As the current valuation looks reasonable, American Express's stock performance shouldn't be negatively impacted by inflationary pressures. That's the benefit of targeting an affluent customer base.
American Express is an advertising partner of Motley Fool Money. Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends American Express. The Motley Fool has a disclosure policy.
NEW YORK--(BUSINESS WIRE)--The Board of Directors of American Express Company (NYSE: AXP) declared a regular quarterly dividend of $0.95 per common share, payable on August 10, 2026, to shareholders of record on July 2, 2026.
ABOUT AMERICAN EXPRESS
American Express (NYSE: AXP) is a global payments and premium lifestyle brand powered by technology. Our colleagues around the world back our customers with differentiated products, services, and experiences that enrich lives and build business success.
Founded in 1850 and headquartered in New York, American Express’ brand is built on trust, security, service, and a rich history of delivering innovation and Membership value for our customers. We seek to provide the world’s best customer experience every day to a broad range of consumers, small and medium-sized businesses, and large corporations, and we build and manage relationships with millions of merchants across our global network.
For more information about American Express, visit americanexpress.com, americanexpress.com/en-us/newsroom/, and ir.americanexpress.com.
Warren Buffett is known as one of the best investors of all time, and for good reason. In roughly 60 years as CEO of Berkshire Hathaway (BRKA +0.76%)(BRKB +0.55%), Buffett generated a staggering 6,099,294% return for shareholders. That's not a typo. Berkshire's returns under Buffett's leadership were roughly 132 times what an investor would have gained in the S&P 500 in the same period.
However, Buffett's stellar performance didn't happen in a straight line. In fact, of those 60 years, Berkshire produced a negative return in 11 of them, including a decline of nearly 49% in a single year.
Berkshire's stellar performance was not driven by how Buffett navigated bull markets. It was driven in large part by Warren Buffett's ability to identify and capitalize on market opportunities when the market was in a bad state.
Image source: The Motley Fool.
Only five years to get excited about? In a recent CNBC interview, Buffett reflected on his tenure at Berkshire by saying, "We've been -- up to 60 years I've been in the business. Probably five of them really juicy."
Looking at his track record, although Berkshire gained in more years than it declined, there were some clear standouts, such as a 130% gain in 1976 and a 103% gain in 1979. But that's not what he was referring to.
Buffett's most exciting years weren't when Berkshire's stock price went up the most. In fact, Buffett is notorious for not really caring about what Berkshire's stock does over any short period.
The five years Buffett likely considers the "juiciest" are when nobody thought it was a good time to buy stocks. The most opportunistic years. He didn't specify which ones, but he's likely referring to years like the 2008 financial crisis, when Berkshire's financial flexibility allowed Buffett to scoop up shares of Goldman Sachs (GS +2.61%) cheaply. This period also led to the savvy acquisition of BNSF Railroad, which is now one of Berkshire's most valuable businesses.
Two that are almost certainly on Buffett's list are 1973 and 1974, when the S&P 500 lost roughly half of its value due to an oil embargo, stagflation, and other issues. The market offered many opportunities for long-term investors in these years, and Buffett has referred to his 1973 investment in Washington Post shares as one of the defining investments of his career.
Another example was 1991, when the Savings and Loan collapse and a recession caused financial stocks to drop sharply. It was at this point that Buffett started buying shares of American Express (AXP +2.18%), which remains one of Berkshire's core stock positions today.
Don't be afraid of the juicy years As an investor who had just started a few years before the financial crisis, I can say firsthand that a 50%+ drawdown in the S&P 500 can be scary. But in retrospect, it was also the period in my investing career when the market was most full of opportunities.
Buffett once said, "Opportunities come infrequently. When it rains gold, put out the bucket, not the thimble." In other words, when opportunities arrive, don't let your natural fear of the market's volatility cause you to tiptoe in. When one of the juicy years presents itself, keep a long-term mentality and buy top-quality businesses on sale.
Of course, Buffett didn't put money to work only in those years. He bought and sold stocks regularly throughout his career, regardless of what the economy or overall stock market was doing. But many of the moves that produced game-changing returns in Berkshire's portfolio were made when the stock market was a scary place to be.
Three of the Dow’s worst performers this year share more than just a red ticker. American Express (NYSE: AXP | AXP Price Prediction) trades at $310.66 versus a Wall Street target of $361.57. Nike (NYSE: NKE) trades at $42.98 against a consensus target of $60.49. Walt Disney (NYSE: DIS) changes hands at $99.71 with analysts modeling $129.67. The implied upside gaps are roughly 16%, 40%, and 30%, respectively.
Each is a household name and Dow component that has lagged while the S&P 500 advanced. The puzzle is why analysts still see this underperformance as a buying setup rather than a warning sign.
Three Names, Three Identical Pressure Points The first commonality is consumer discretionary exposure. Premium card swipes, sneakers, and theme park tickets soften when households tighten. Goldman Sachs flagged slowing consumer spending as a key 2026 risk, and JPMorgan described a K-shaped economy where middle-income and below consumers feel pressured. These three companies sit directly in that crosswind.
The second link is premium customer tilt. American Express is built on affluent card members and has executed a U.S. Platinum Card refresh. Nike’s North America pricing depends on full-price sell-through. Disney’s Experiences segment booked record fiscal Q2 revenues of $9.49 billion on per-capita spending up 5%. Premium has been the moat, but spending slowdowns show up first here.
The third link is leadership transition. Nike CEO Elliott Hill is mid-turnaround with his Win Now plan. Disney handed the baton from Robert Iger to Josh D’Amaro. American Express CEO Stephen Squeri is steering a multi-year premium product refresh cycle. Transitions create uncertainty, and the market has discounted all three accordingly.
What Actually Broke the Stocks American Express is off 16.0% year to date on a Q4 EPS miss of $3.53 vs. $3.55 and Platinum refresh expenses pushing costs up 10%. Disney has slid 12.4% year to date after Q1 free cash flow swung to −$2.28 billion and Entertainment segment OI dropped 35% in fiscal Q4.
Nike’s pain is acute. The stock has dropped 32.5% year to date, weighed down by 130 basis points of gross margin compression from North American tariffs, a 35% net income drop in the latest quarter, and Converse revenues down 35%.
Why the Street Will Not Budge Analysts argue operating data is already turning. American Express reaffirmed FY26 guidance for revenue growth of 9% to 10% and EPS of $17.30 to $17.90, with Card Member spend at a three-year high. Nike’s margin compression has narrowed from −440 basis points in Q4 FY25 to −130 basis points in Q3 FY26, wholesale grew 5%, and Hill called the company in the “middle innings of our comeback.” Disney guided to ~16% adjusted EPS growth in FY26, an $8 billion buyback, and its first double-digit SVOD operating margin.
Analyst sentiment reflects that, with Disney being the most loved by analysts.
How the Math Stacks Up The performance spread tells the story. The S&P 500 is up 8.2% year to date, so American Express trails the index by close to 24 points, Nike by nearly 40, and Disney by roughly 20. Over one year, American Express has eked out a 5.0% gain, while Nike is down 31.4% and Disney down 11.4%.
Valuation lines up with the recovery story. American Express and Nike trade at forward P/E ratios of 18 and 22, respectively. Disney is the cheapest of the three at 13 forward, with a P/B of roughly 2.
The Takeaway The bull case rests on the consumer holding, tariffs easing, and operating leverage from premium refresh cycles kicking in during the back half of FY26. Disney offers the clearest path to target, with streaming margins inflecting and buybacks accelerating. American Express has the cleanest fundamentals and is closest to its target. Nike offers the biggest gap and the biggest risk.
The bear case takes over if the K-shaped consumer cracks. Tariffs would grind Nike margins, credit normalization would test American Express, and parks and ad-supported streaming would feel any pullback at Disney.
The verdict is constructive on Disney and American Express, but watchful on Nike until Greater China stabilizes and Converse stops bleeding. For two of the three stocks, the gap represents an opportunity. Nike is still earning the benefit of the doubt.
Key Takeaways Delta Air Lines added a free second checked bag for eligible SkyMiles cardholders. DAL introduced a $120 annual rideshare credit for eligible SkyMiles Gold members. Delta Air Lines enhanced welcome offers with up to 125,000 bonus miles for new cardholders. Delta Air Lines (DAL - Free Report) continues to enhance the value of its co-branded credit card portfolio through its partnership with American Express (AXP - Free Report) . The addition of a complimentary second checked bag for eligible Delta SkyMiles Gold, Platinum and Reserve cardholders provides a meaningful travel benefit that can help customers reduce travel costs and improve their overall experience. These enhancements strengthen the attractiveness of the SkyMiles program and reinforce customer loyalty without increasing annual fees.
The company also expanded cardholder benefits beyond air travel by introducing a $120 annual rideshare credit for eligible Delta SkyMiles Gold cardholders. By offering value throughout the travel journey, from transportation to the airport and the flight itself. This makes Delta and American Express cards more relevant for everyday spending while encouraging greater customer engagement with the loyalty program.
Delta further supports growth in its co-branded card business through enhanced welcome offers that provide up to 125,000 bonus miles for new cardholders. These incentives should help attract new customers, encourage higher spending levels and drive broader participation in the SkyMiles ecosystem, ultimately benefiting both Delta and American Express.
Overall, Delta’s latest card enhancements underscore the strength of its partnership with American Express and its focus on delivering greater value to travelers. The combination of practical travel benefits, attractive rewards and strong customer incentives should support cardholder growth, increase loyalty and strengthen the long-term performance of its co-branded card program.
DAL’s Share Price PerformanceDAL’s shares have gained 54.2% in the year-to-date compared with the Transportation - Airline industry’s 12.6% growth.
Image Source: Zacks Investment Research
DAL’s Zacks RankDAL currently carries a Zacks Rank #3 (Hold).
Stocks to ConsiderInvestors interested in the Zacks Transportation sector may consider Expeditors International of Washington, Inc. (EXPD - Free Report) and International Seaways (INSW - Free Report) .
EXPD currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Expeditors has an expected earnings growth rate of 11.9% for the current year. The company has an encouraging earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 13.96%.
INSW currently sports a Zacks Rank #1.
INSW has an expected earnings growth rate of more than 100% for the current year. The company has an encouraging earnings surprise history. Its earnings topped the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 33.93%.
In the latest trading session, American Express (AXP - Free Report) closed at $318.38, marking a +1.95% move from the previous day. The stock's change was more than the S&P 500's daily loss of 0.26%. Elsewhere, the Dow gained 0.17%, while the tech-heavy Nasdaq lost 0.97%.
The stock of credit card issuer and global payments company has fallen by 0.01% in the past month, lagging the Finance sector's gain of 0.29% and the S&P 500's gain of 0.23%.
Investors will be eagerly watching for the performance of American Express in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on July 24, 2026. The company is expected to report EPS of $4.37, up 7.11% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $19.54 billion, indicating a 9.45% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $17.59 per share and revenue of $79.13 billion. These totals would mark changes of +14.37% and +9.55%, respectively, from last year.
Investors should also pay attention to any latest changes in analyst estimates for American Express. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. As of now, American Express holds a Zacks Rank of #3 (Hold).
In terms of valuation, American Express is currently trading at a Forward P/E ratio of 17.75. This valuation marks a premium compared to its industry average Forward P/E of 10.26.
We can additionally observe that AXP currently boasts a PEG ratio of 1.27. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. AXP's industry had an average PEG ratio of 1 as of yesterday's close.
The Financial - Miscellaneous Services industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 150, positioning it in the bottom 39% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
Here at Zacks, we offer our members many different opportunities to take full advantage of the stock market, as well as how to invest in ways that lead to long-term success.
One of our most popular services, Zacks Premium offers daily updates of the Zacks Rank and Zacks Industry Rank; full access to the Zacks #1 Rank List; Equity Research reports; and Premium stock screens like the Earnings ESP filter. All are useful tools to find what stocks to buy, what to sell, and what are today's hottest industries.
Also included in Zacks Premium is the Focus List. This is a long-term portfolio of top stocks that have all the traits to beat the market.
Breaking Down the Zacks Focus ListIf you could get access to a curated list of stocks to kickstart your investment portfolio, wouldn't you jump at the chance to take a peek?
Enter the Zacks Focus List. It's a portfolio made up of 50 stocks that are set to beat the market over the next 12 months; each company selected serves as a foundation for long-term investors looking to create an individual portfolio.
What makes the Focus List even more helpful is that each selection is accompanied by a full Zacks Analyst Report, which explains the reasoning behind every stock's selection and why we believe it's a good pick for the long-term.
The portfolio's past performance only solidifies why investors should consider it as a starting point. For 2020, the Focus List gained 13.85% on an annualized basis compared to the S&P 500's return of 9.38%. Cumulatively, the portfolio has returned 2,519.23% while the S&P returned 854.95%. Returns are for the period of February 1, 1996 to March 31, 2021.
Focus List MethodologyWhen stocks are picked for the Focus List, it reflects our enduring reliance on the power of earnings estimate revisions.
Brokerage analysts are in charge of determining a company's growth and profitability expectations, or earnings estimates. These analysts work together with company management to evaluate all factors that may affect future earnings, like interest rates, the economy, and sector and industry optimism.
What a company will earn down the road also needs to be taken into consideration, and this is why earnings estimate revisions are so important.
Stocks that receive upward earnings estimate revisions are more likely to receive even more upward changes in the future. For example, if an analyst raised their estimates last month, they're more likely to do it again this month, and other analysts are likely to do the same.
Harnessing the power of earnings estimate revisions is where the Zacks Rank comes in. The Zacks Rank is a unique, proprietary stock-rating model that utilizes changes to a company's quarterly earnings expectations to help investors build a winning portfolio.
There are four main factors behind the Zacks Rank: Agreement, Magnitude, Upside, and Surprise. Each one of these features is then given a raw score that's recalculated every night and compiled into the Rank. Using this data, stocks are classified into five groups, ranging from "Strong Buy" to "Strong Sell."
The Focus List is comprised of stocks hand-picked from a long list of #1 (Strong Buy) or #2 (Buy) ranked companies, meaning that each new addition boasts a bullish earnings consensus among analysts.
Because stock prices react to revisions, buying stocks with rising earnings estimates can be very profitable. Focus List stocks offer investors a great opportunity to get into companies whose future earnings estimates will be raised, potentially leading to price momentum.
Focus List Spotlight: American Express (AXP - Free Report) Founded in 1850, NY-based American Express Company is a diversified financial services company, offering charge and credit payment card products, and travel-related services worldwide. AmEx earns revenue through both transaction fees and interest income, supported by a closed-loop payment network. Unlike open-loop peers (e.g., Visa or Mastercard), its integrated system allows AmEx to engage directly with both merchants and cardholders. This setup enables deeper customer insights, targeted marketing and strong customer loyalty.
Since being added to the Focus List on December 23, 2021 at $162.47 per share, shares of AXP have increased 95.96% to $318.38. The stock is currently a #3 (Hold) on the Zacks Rank.
For fiscal 2026, five analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.06 to $17.59. AXP boasts an average earnings surprise of 4%.
Earnings for AXP are forecasted to see growth of 14.4% for the current fiscal year as well.
Reveal Winning StocksUnlock all of our powerful research, tools and analysis, including the Zacks #1 Rank List, Equity Research Reports, Zacks Earnings ESP Filter, Premium Screener and more, as part of Zacks Premium. You'll quickly identify which stocks to buy, hold and sell, and target today's hottest industries, to help improve the performance of your portfolio. Gain full access now >>
They’ll break out the champagne downtown on July 9, when ground will be broken for the long-awaited American Express tower at Two World Trade Center. The public start of construction caps a quarter-century struggle to fully replace the Twin Towers and other buildings at the 16-acre site that were destroyed on 9/11.
“It will be a banner day for New York and since it’s Amex, it’s a banner made of platinum and gold,” quipped Downtown Alliance President Jessica Lappin.
It’s celebration time as well for Larry Silverstein, who’ll build the tower for Amex. The developer of 3, 4 and 7 World Trade Center and the original developer of 1 World Trade before he turned it over to the Port Authority and the Durst Organization had been stymied by his inability to sign an anchor tenant for the 55-story project, which could cost up to $4 billion.
The groundbreaking for American Express’ new headquarters at Two World Trade Center will be July 9. Foster Partners Amex will not be a tenant, but the tower’s owner under a ground lease with the PA. It joins the other thriving Trade Center towers, which are nearly 100% leased with asking rents of over $200 per square foot.
The design by Foster + Partners includes six exposed corner gardens and three large terraces to break up its towering glass curtain wall.
Underground work has been going on for months. Sources said the supertall tower will first poke its head out of the ground in August with the start of vertical core construction.
Structural steel will begin to rise in late spring 2027, followed by topping out in late 2029. The skyscraper will be substantially finished in 2030 and doors will open in 2031.
It’s celebration time as well for developer Larry Silverstein, who’ll build the tower for Amex. Tamara Beckwith “I can’t imagine a better partner to complete the World Trade Center campus than American Express, an iconic institution embodying the strength, resilience, and global significance of the project,” said Silverstein Properties CEO Lisa Silverstein.
The July 9 ceremony will be attended by yet-to-be-named executives from Amex, government, the landowning Port Authority and real estate.
Such important groundbreakings typically draw the governor and mayor.
The design by Foster + Partners includes six exposed corner gardens and three large terraces to break up its towering glass curtain wall. Foster Partners “Even Mayor Mamdani, no fan of major corporations, will probably show up,” said a source familiar with the project.
The far-left mayor previously called the project “a testament to the power of union labor and the dignity of work.”
NEW YORK--(BUSINESS WIRE)--Pfizer Inc. (NYSE: PFE) today announced that the U.S. Food and Drug Administration (FDA) has approved an expanded indication for HYMPAVZI® (marstacimab-hncq) to include the treatment of patients with hemophilia A or B 12 years and older with inhibitors and pediatric patients (ages 6 to 11 years) with or without inhibitors. HYMPAVZI is now indicated in the U.S. for routine prophylaxis to prevent or reduce the frequency of bleeding episodes in adults and pediatric patie.
A Pfizer logo is displayed at a research facility in the La Jolla neighborhood of San Diego, California, U.S., September 30, 2025. REUTERS/Mike Blake Purchase Licensing Rights, opens new tab
CompaniesJune 8 (Reuters) - The U.S. Food and Drug Administration has approved Pfizer's (PFE.N), opens new tab drug to prevent or reduce the frequency of bleeding episodes in children and in certain patients with hemophilia, the company said on Monday.
The nod makes Pfizer's Hympavzi the first non-factor therapy available for pediatric patients with hemophilia B aged 6 to 11 years with or without inhibitors.
Keep up with the latest medical breakthroughs and healthcare trends with the Reuters Health Rounds newsletter. Sign up here.
The regulator also expanded the use to include those with hemophilia A or B aged 12 years and older with inhibitors, a type of antibody.
Hympavzi is already approved for patients aged 12 years and older without the antibodies that stop the production of the blood-clotting proteins.
It is given under the skin through an auto-injector pen, and is an alternative to intravenous infusions that are often administered multiple times a week.
Hemophilia is a rare condition in which the blood doesn't clot well because it doesn't have enough blood-clotting proteins, called clotting factors, causing spontaneous and severe bleeding following injuries or surgery.
Hemophilia A, the most common type, is caused by a lack of or low levels of the blood-clotting factor VIII. Meanwhile, Hemophilia B is caused by a deficiency of or low levels of blood-clotting factor IX.
In the late-stage trial, Hympavzi significantly reduced the mean treated annualized bleeding rate in adults and adolescents 12 years and older with hemophilia A or B with inhibitors.
(This story has been corrected to say that Hympavzi is the first non-factor therapy particularly for pediatric patients with hemophilia B, not all pediatric patients, in paragraph 2)
Reporting by Sriparna Roy in Bengaluru; Editing by Shreya Biswas
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Pfizer (PFE) reports positive mid-stage trial data for berobenatide, aiming to be the first GLP-1 obesity therapy with monthly dosing. PFE plans up to 10 Phase 3 trials for berobenatide, targeting long-term obesity management and related conditions.
Key Takeaways Pfizer gained FDA approval to expand Hympavzi use in additional hemophilia A and B populations.Hympavzi is now approved for routine prophylaxis in patients aged six and older with or without inhibitors.PFE's expanded label for Hympavzi is backed by phase III BASIS and BASIS KIDS study data. Pfizer (PFE - Free Report) announced that the FDA has approved its anti-TFPI inhibitor Hympavzi (marstacimab) for the treatment of two additional hemophilia A or B patient populations. The latest approval now includes the treatment of hemophilia A or B in patients aged 12 years and above with inhibitors, as well as pediatric patients aged six to 11 years with or without inhibitors.
Following the latest FDA nod, HYMPAVZI is now approved in the United States for routine prophylaxis to prevent or reduce the frequency of bleeding episodes in adults and pediatric patients aged six years and older with hemophilia A with or without factor VIII inhibitors, or hemophilia B with or without factor IX inhibitors.
With this approval, Hympavzi has now become the first subcutaneous non-factor therapy available for treating pediatric patients with hemophilia B aged six to 11 years, addressing a significant medical need for the given patient population.
The European Commission recently approved Hympavzi for patients aged 12 years and older weighing at least 35 kg with hemophilia A (congenital factor VIII [FVIII] deficiency) FVIII inhibitors or hemophilia B (congenital factor IX [FIX] deficiency) FIX inhibitors.
PFE Stock PerformanceYear to date, shares of Pfizer have rallied 6.4% compared with the industry’s rise of 5.8%.
Image Source: Zacks Investment Research
More on Pfizer’s Hympavzi Label ExpansionThe latest approval of Hympavzi for adolescents and adults aged 12 years and older with hemophilia A or B who have inhibitors was based on data from the phase III BASIS study.
The study showed that Hympavzi significantly reduced bleeding episodes, lowering the average annualized bleeding rate by 93% compared with on-demand intravenous treatment using bypassing agents.
Meanwhile, the approval for Hympavzi in children aged six to 17 years with hemophilia A or B, regardless of inhibitor status, was based on interim results from the phase III BASIS KIDS study.
In February 2026, the FDA accepted and granted Priority Review to the supplemental biologics license application (sBLA) seeking approval for Hympavzi for expanded use in the given patient population.
A rare genetic blood disorder, hemophilia is caused by a missing clotting protein (FVIII in case of hemophilia A and FIX in case of hemophilia B), which prevents normal blood clotting. If the blood does not clot properly, it can lead to painful bleeding inside the joints that can cause scarring and damage.
Hympavzi targets tissue factor pathway inhibitor (TFPI), which is a natural anticoagulation protein that functions to prevent the formation of blood clots.
PFE's Zacks Rank & Stocks to ConsiderPfizer currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the biotech sector are Indivior Pharmaceuticals (INDV - Free Report) , Liquidia Corporation (LQDA - Free Report) and Immunocore (IMCR - Free Report) , each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Over the past 60 days, estimates for Indivior Pharmaceuticals’ 2026 earnings per share (EPS) have increased from $3.33 to $4.05. Over the same period, EPS estimates for 2027 have risen from $3.66 to $4.27. INDV shares have risen 4.2% year to date.
Indivior Pharmaceuticals’ earnings beat estimates in each of the trailing four quarters, with the average surprise being 65.44%.
Over the past 60 days, estimates for Liquidia’s 2026 EPS have increased to $2.97 from $1.50. Over the same period, EPS estimates for 2027 have risen to $4.81 from $2.91. LQDA shares have surged 85.3% year to date.
Liquidia’s earnings beat estimates in three of the trailing four quarters and missed in the remaining one, with the average surprise being 54.40%.
Over the past 60 days, estimates for Immunocore’s 2026 have improved from a loss of 88 cents per share to earnings of 6 cents. Over the same period, EPS estimates for 2027 have risen from 24 cents to 87 cents. IMCR shares have lost 19.9% year to date.
Immunocore’s earnings beat estimates in three of the trailing four quarters and missed in the remaining one, with the average surprise being 46.66%.
Key Takeaways AMRX supports Pfizer's GLP-1 therapies through a manufacturing and supply partnership.Amneal agreed to acquire Kashiv BioSciences to build a fully integrated biosimilars platform.Affordable Medicines is projected to grow 7%-8% in 2026, aided by complex product launches. Amneal Pharmaceuticals (AMRX - Free Report) is building a growth narrative that leans less on any single product and more on scale across complex medicines. The company’s first-quarter results reinforced that setup, with earnings and revenue coming in ahead of expectations.
Management is investing in capacity for higher-value products while keeping a diversified base across generics, specialty brands, and government distribution.
AMRX Collaboration Shifts the Story to ScaleAmneal has a manufacturing and supply partnership for glucagon-like peptide-1 therapies with Metsera, which is now owned by Pfizer. The arrangement leverages Amneal’s peptide and sterile injectables infrastructure to support production of Pfizer’s glucagon-like peptide-1 and related metabolic therapies.
Strategically, it matters because it reinforces a pivot toward higher-value complex injectables and peptide therapeutics. It also helps frame Amneal less as a traditional generics story and more as a platform that can scale manufacturing in fast-growing categories.
Amneal’s GLP-1 Work Adds Revenue Without Discovery RiskThe core investor takeaway is the risk profile. The partnership offers revenue exposure tied to the rapid growth in metabolic therapies without Amneal bearing the clinical development costs and failure risk that come with discovering new drugs.
That difference is critical in a market dominated by innovators like Novo Nordisk (NVO - Free Report) and Eli Lilly (LLY - Free Report) , where clinical outcomes, labeling, and payer access can make or break returns. For Amneal, the economics are linked to manufacturing execution and capacity, not trial readouts.
AMRX Peptides and Sterile Injectables Become CoreAmneal is explicitly using the collaboration to deepen its capabilities in peptides and sterile injectables. The company describes this infrastructure as “growing,” and the Pfizer-linked work is positioned as a catalyst that strengthens manufacturing capability while building credibility in complex production.
Over time, that can improve positioning across other complex injectable opportunities as well. The logic is straightforward: capacity built for demanding metabolic therapies can support a broader portfolio, widening Amneal’s addressable opportunity set in higher-value dosage forms.
Amneal’s Kashiv Deal Could Deepen BiosimilarsIn April 2026, Amneal signed a definitive agreement to acquire Kashiv BioSciences for up to $1.10 billion. The structure includes $375 million in cash and $375 million in equity, plus up to $350 million in milestone-based payments tied to regulatory and commercial achievements.
The transaction is expected to close in the second half of 2026, subject to customary closing conditions. The stated goal is to position Amneal as a fully integrated global biosimilar platform.
That ambition matters because biosimilars are not just another product category. They require deep development expertise, manufacturing rigor, and commercialization coordination. Established biosimilar specialists like Sandoz Group AG highlight how scale and repetition can become an advantage once the platform is built.
AMRX Biosimilars and Complex Launch Cadence MatterAmneal’s growth algorithm depends on cadence. The company expects Affordable Medicines to accelerate, with segment net revenues projected to grow 7% to 8% in 2026, supported by 20 to 30 new product launches each year, including complex products.
Biosimilars are part of that momentum. A biosimilar version of Novartis’ Xolair is under review, and approval would bring Amneal to six biosimilars in the United States.
At the same time, recent regulatory traction underscores the direction of travel in differentiated forms. The FDA approved Amneal’s romidepsin injection solution in a ready-to-use vial format, which management highlighted as more convenient than a powder requiring mixing. The product is also eligible for Competitive Generic Therapy designation, providing 180 days of market exclusivity.
Amneal’s Offsets Investors Can’t Ignore in 2026The nearer-term headwind is Specialty. Management expects Specialty revenue growth to be roughly flat in 2026 as Crexont growth offsets anticipated generic erosion of Rytary, which has already seen an authorized generic and is expected to face additional generic entrants.
Pressure can also come from the base business. U.S. generics remain intensely competitive, and pricing pressure can squeeze margins even when volumes are healthy.
Finally, execution and timing risk remains real in complex products. Complex injectables, biosimilars, and niche specialty therapies face strict manufacturing requirements and rigorous regulatory scrutiny, and delays or slower-than-expected uptake can disrupt timelines.
What to Watch Through the Second Half of 2026 for AMRXOne should track the progress of the Kashiv acquisition closing in the second half of 2026 and any updates tied to regulatory and commercialization milestones that shape the total consideration.
Also, focus on execution in complex injectables, where differentiated formats and exclusivity windows can improve mix. The company is clearly pushing deeper into higher-value injectables, and the Pfizer-linked metabolic manufacturing work raises the bar for operational delivery.
Amneal’s 2026 outlook calls for net revenues of $3.05 billion to $3.15 billion and adjusted EBITDA of $740 million to $770 million, reflecting continued progress in profitability and cash generation as it invests for higher-value products.
AMRX’s Zacks RankAmneal currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Pfizer (NYSE:PFE | PFE Price Prediction) trades at $25.62, pays a 6.7% dividend yield, and just posted five straight quarterly EPS beats before stumbling in Q1. Yet the stock is up only 6.37% YTD this year. Can Pfizer shares double to $50 by 2031?
What’s Holding Pfizer Back Pfizer is down 0.23% over the past month and essentially flat over the past week. Over five years, holders face a 16.77% loss.
The COVID cliff is the culprit. Comirnaty revenue fell 59% in Q1 2026 and Paxlovid dropped 63%, masking strong growth elsewhere. Add the $1.5 billion generic and biosimilar headwind expected this year, plus Barclays maintaining a Sell rating with a $25 price target, and the market refuses to re-rate the stock. With a beta of just 0.295, Pfizer needs proof, not hope.
Wall Street Sees 14% Upside. The Real Number Is Bigger The consensus target sits at $29.19, with 2 Strong Buys, 9 Buys, 15 Holds, 1 Sell, and 2 Strong Sells. That works out to a 38% bullish camp, missing the obesity and oncology pipeline.
My model points to $32.01 in 12 months, roughly 24.95% upside, with a bull case at $35.54 and a bear case at $28.30. Confidence on that base case is high. The Street has not priced in the pipeline’s potential and will play catch-up by 2027.
The Path to $50 Reaching $50 from today’s price of $25.62 requires a gain of 95.2%. With forward EPS of $3.21, a price of $50 implies a forward P/E of roughly 16x. My base case of $32.01 already embeds 8x, meaning the target needs about 7x of multiple expansion.
That sounds aggressive until you examine what is brewing. Berobenatide, Pfizer’s monthly GLP-1, posted 15.9% weight loss at 32 weeks with no plateau, with 10 Phase 3 studies planned this year.
HYMPAVZI won expanded FDA approval for pediatric hemophilia patients. The Lyme disease vaccine showed 73.2% efficacy in Phase 3. Jefferies reaffirmed a Buy rating with a $35 target.
CEO Albert Bourla said on the Q1 call: “I’m particularly encouraged by what we’re seeing in oncology and obesity, two areas where I believe Pfizer is positioned to lead.” A successful obesity launch could re-rate this stock toward Eli Lilly (NYSE:LLY) territory. The biggest risk is patent cliff erosion outpacing new launch revenue.
Valuation vs. Earnings Power At $25.62, Pfizer trades at roughly 8x forward earnings against guidance of $2.80 to $3 in adjusted EPS for 2026. Shares sit between a 52-week high of $28.28 and a low of $21.97. Ten-year total return is just 19.62%, brutal for a Dow component. That low multiple is the entire bull case. Re-rating a single-digit P/E stock paying a near 7% yield just takes the pipeline working.
Is $50 Realistic? $50 by 2031 requires a 95.2% gain. My five-year base case lands at $49.39, with a bull case of $55.47.
Three things must go right: Berobenatide must deliver in Phase 3 and commercialize cleanly. The oncology franchise (Padcev, Lorbrena, Talzenna) must keep compounding. Management must defend Vyndamax through the 2031 patent extension without margin damage. A Most-Favored-Nation pricing regime that caps US drug economics would derail it. We’ve outlined the blueprint for how Pfizer could reach $50 in 2031.
Item 1 of 2 Chairman and CEO of Pfizer Albert Bourla attends the 56th annual World Economic Forum (WEF) meeting in Davos, Switzerland, January 23, 2026. REUTERS/Denis Balibouse
[1/2]Chairman and CEO of Pfizer Albert Bourla attends the 56th annual World Economic Forum (WEF) meeting in Davos, Switzerland, January 23, 2026. REUTERS/Denis Balibouse Purchase Licensing Rights, opens new tab
CompaniesLONDON/FRANKFURT, June 10 (Reuters) - Pfizer (PFE.N), opens new tab is reviewing the timing and scope of planned investments in Germany, CEO Albert Bourla said in a letter to Chancellor Friedrich Merz, the latest drugmaker to react to government policy proposals that would lower drug prices.
Pfizer's letter, dated June 9 and seen by Reuters on Wednesday, was first reported by German business newspaper Handelsblatt.
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Bourla wrote that the proposals call into question the predictability required for the pharmaceutical industry's long-term investment decisions.
"As a result, we are reviewing our external engagements as well as the timing, scope and future prioritization of certain planned investments in Germany," the letter read, without specifying what investments it was referring to.
Pfizer declined to comment further on the letter.
PLANNED HEALTHCARE COST CUTSThe letter comes a week after U.S.-based Eli Lilly (LLY.N), opens new tab said it would halve its $2.3 billion investment in Germany, and German drugmaker Boehringer Ingelheim scrapped its €900 million plans, both citing the government's planned healthcare cost-cutting measures.
The proposed legislation in Germany to cap rapidly growing costs in the statutory health insurance system has thrust the country into the centre of a broader tussle between drugmakers and European governments that began several months ago.
That tension stems from the impact on Europe of U.S. President Donald Trump’s “most-favored-nation” pricing push, which aims to tie some medicine prices in the lucrative U.S. market to lower prices elsewhere, including in Europe.
Pfizer and Lilly are among the 17 major drugmakers that have secured agreements with the White House to bring U.S. prescription drug prices in line with those paid in other developed nations in exchange for tariff exemptions.
Many large pharmaceutical firms, including AstraZeneca (AZN.L), opens new tab and Roche (ROPC.S), opens new tab, have recently warned that they may be unable to launch their future innovative medicines in Europe unless governments agree to pay more than they historically have.
Governments are holding firm.
In a letter to Chancellor Merz dated April 22, Bourla and more than 30 other CEOs of major pharmaceutical firms requested an "urgent face-to-face or virtual meeting" with Merz "in the coming days".
There was no response, several industry sources said.
The German government did not immediately respond to a request for comment.
Reporting by Maggie Fick and Bhanvi Satija in London, and Patricia Weiss in Frankfurt. Additional reporting by Andreas Rinke in Berlin. Editing by Mark Potter and David Holmes
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Maggie is a Britain-based reporter covering the European pharmaceuticals industry with a global perspective. In 2023, Maggie's coverage of Danish drugmaker Novo Nordisk and its race to increase production of its new weight-loss drug helped the Health & Pharma team win a Reuters Journalists of the Year award in the Beat Coverage of the Year category. Since November 2023, she has also been participating in Reuters coverage related to the Israel-Hamas war. Previously based in Nairobi and Cairo for Reuters and in Lagos for the Financial Times, Maggie got her start in journalism in 2010 as a freelancer for The Associated Press in South Sudan.
Bhanvi is a London-based reporter covering European pharmaceutical companies and the healthcare industry. She previously covered U.S. health and pharma firms, with a focus on the new weight loss drugs that are transforming the obesity treatment space. Her coverage includes a trend piece on the underuse of their weight-loss drugs among men, increased interest in therapies being developed for preservation of lean mass, and a scoop on gene therapy maker Sarepta defying an FDA order to stop shipping its muscular dystrophy treatment.
Roche Holding AG and Pfizer Inc. are aggressively advancing obesity and T2D pipelines to capture share in the surging GLP-1 market. RHHBY's enicepatide shows strong Phase 2 weight loss data (22.7% at 24mg), with a robust safety profile and a diversified cardiometabolic pipeline. PFE touts monthly-dosed berobenatide as potentially best-in-class via meta-analysis, but lacks head-to-head clinical superiority and relies on modeling.
Pfizer (PFE +2.23%) shares gained 2.8% through 11:15 a.m. ET Thursday, and investors can thank the friendly bankers at RBC Capital Markets for that.
This morning, RBC removed its sell rating from Pfizer stock, upgrading the shares from "underperform" to "sector perform."
Image source: Getty Images.
Why RBC likes, not loves, Pfizer stock So RBC isn't telling you to buy Pfizer stock... yet. But the banker is saying there's no longer a need to sell the big pharma giant. Why is that?
Basically, because RBC thinks the price is right on Pfizer shares after retreating 11% from their highs. RBC notes that investors have been cautious about Pfizer of late, worried that the company is lagging in the race to bring GLP-1 weight-loss drugs to market and at risk of revenue decline.
RBC isn't optimistic about Pfizer's chances of breaking Eli Lilly's (LLY +2.28%) and Novo Nordisk's (NVO +2.69%) stranglehold on the GLP-1 market. But balancing this risk is a pair of late-stage clinical trial cancer drugs Pfizer wants to bring to market: sigvotatug vedotin for treating lung cancer, and mevro for treating metastatic castration-resistant prostate cancer. RBC thinks success with these two drugs could add $1.2 billion and $2.7 billion, respectively, to Pfizer's revenue stream.
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What's next for Pfizer stock Near-term, Pfizer stock is still expected to struggle, with most analysts forecasting single-digit revenue declines this year and next -- and even steeper earnings declines.
That's not great news, but here's the thing: Even assuming earnings decline as forecast, to $3 a share or so, Pfizer stock only costs about nine times earnings. With a 6.7% dividend yield, Pfizer doesn't need to grow much at all, or soon at all, to justify its share price today.
At today's valuation, Pfizer is simply too cheap to sell.
Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Eli Lilly and Pfizer. The Motley Fool recommends Novo Nordisk. The Motley Fool has a disclosure policy.
At $25.60, Pfizer (NYSE:PFE | PFE Price Prediction) sits in Hold territory on Wall Street’s consensus. The headline 6.7% dividend yield is reason to pause rather than pounce. A payout that fat usually reflects a market pricing in trouble, and the under-the-radar concern is whether stretched operating cash flow can fund both the dividend and the debt stack from Pfizer’s recent acquisition spree.
Pfizer sits in the Drug Manufacturers General bucket with a $146.02 billion market cap, anchored by Eliquis, the Vyndaqel family, Padcev, and a fast-fading COVID franchise. The company is mid-pivot, replacing Comirnaty and Paxlovid revenue with oncology, obesity, and vaccines while digesting the roughly $7 billion Metsera deal and the $1.35 billion 3SBio transaction. That transition is the real story.
Why the Bull Case Still Has Teeth Bulls point to a fifth consecutive EPS beat, with Q1 2026 revenue of $14.451 billion beating consensus by 4.70% and adjusted EPS of $0.75 ahead of the $0.7217 estimate. Launched and acquired products grew 22% operationally, Padcev rose 39%, and the Vyndamax patent settlement pushes effective U.S. exclusivity to June 2031.
Valuation looks undemanding. Forward P/E of 9x against reaffirmed 2026 adjusted EPS guidance of $2.80 to $3.00 implies margin of safety, and a Lyme vaccine showing 73.2% Phase 3 efficacy plus roughly 20 pivotal trial starts in 2026 offer free optionality.
Why the Bear Case Is Louder Than It Looks Comirnaty fell 59% and Paxlovid 63% in Q1, and management flagged a $1.5 billion generic and biosimilar headwind for 2026. Operating income dropped 31.44% year over year despite revenue growth, signaling cost inflation.
Capital allocation worries persist. ROIC sits at -1.29%, net debt to EBITDA is 3.26, and Pfizer confirmed no buybacks in 2026. Jim Cramer recently dismissed the name, saying Pfizer “does not have any earnings momentum” and that yield seekers should buy bonds instead.
Why Patience Is the Sharper Trade The patent-cliff-versus-pipeline equation is unresolved. Vyndaqel exclusivity to 2031 buys time, but obesity readouts from the Metsera platform face entrenched competition from Eli Lilly and Novo Nordisk. CEO Albert Bourla said he is “particularly encouraged by what we’re seeing in oncology and obesity”, but encouragement is not a Phase 3 win.
Insiders are not selling. Bourla acquired phantom stock units at $25.33 on May 15, and twelve directors took identical 7,686.539-share grants at $26.67. That signals comfort.
What the Price Action and the Targets Say PFE trades at $25.60, up 6.29% year to date and 12.75% over twelve months, while the S&P 500 has posted a single-digit YTD gain. The trailing P/E is 20x and beta is 0.295.
The Wall Street consensus target is $29.19, implying roughly 13.9% upside. Across 29 analysts the breakdown is 2 Strong Buy, 9 Buy, 15 Hold, 1 Sell, and 2 Strong Sell, with Hold the plurality view.
The Verdict: Collect the Coupon, Skip the Conviction At $25.60, Pfizer screens as a Hold on consensus. The 6.7% yield is well covered by a 6.22% free cash flow yield, and 16 straight years of dividend hikes give existing holders reason to sit tight and collect.
The under-the-radar problem is balance sheet math. With ROIC negative, net debt to EBITDA above 3x, no buybacks, and roughly stretched corporate cash flow margins forced to service massive debt piles from legacy acquisitions right as Kevin Warsh scales up quantitative tightening, fresh capital deployed here funds the transition. The Polymarket-implied price sits at $22.58, an 11.8% downside, while analysts see upside to $29.19. That gap is the Hold.
Watch the Padcev PDUFA on August 17, 2026, Metsera GLP-1 readouts, and any sign COVID revenue is stabilizing near the $5 billion floor. The $22.00 level represents the absolute bottom support to watch for any meaningful re-entry thesis. Until then, existing holders can collect the dividend while the pipeline races the debt clock.
Pfizer (NYSE:PFE | PFE Price Prediction) is in the middle of its biggest reinvention in a generation, leaning on the Seagen oncology platform and the freshly closed Metsera obesity assets to offset a COVID revenue cliff and looming patent losses. With shares at $25.60 and yielding nearly 7%, the only question that matters for income investors is whether that payout is actually safe.
Dividend Snapshot Metric Value Annual Dividend $1.72 Dividend Yield 6.70% Consecutive Years of Increases ~16 years Most Recent Increase 2.4% (late 2025) Aristocrat/King Status No (cut in 2009) FCF Coverage Is Tighter Than the Earnings Payout Suggests On adjusted EPS of $3.22, the $1.72 dividend works out to roughly a 53% earnings payout. The cash math is less generous. Pfizer generated $11.7 billion in operating cash flow in 2025 against $2.6 billion in capex, leaving $9.08 billion in free cash flow versus $9.77 billion paid in dividends.
Metric TTM Assessment Earnings Payout Ratio ~53% Healthy FCF Payout Ratio ~108% Concerning OCF / Dividend 1.20x Adequate FCF coverage slipped from 1.03x in 2024 to 0.93x in 2025. The check is clearing, but the buffer is thin.
Leverage From the Seagen Deal Still Casts a Shadow Metric Value Assessment Debt-to-Equity 0.78 Moderate Net Debt/EBITDA 3.26x Elevated Interest Coverage 5.78x Adequate Pfizer ended Q1 at 2.8x leverage by management’s measure, and deleveraging is explicitly tied to dividend protection.
Sixteen Straight Raises, but the 2009 Cut Still Counts Year Annual Dividend 2026 $1.72 2024 $1.68 2022 $1.60 2020 $1.52 Pfizer halved the dividend in 2009 to fund the Wyeth deal, so this is not a Dividend Aristocrat. Growth has also cooled to a roughly 2.4% bump for 2026.
Management Calls the Dividend a Priority CEO Albert Bourla told investors on the Q1 2026 call: “We also remain deeply committed to our shareholders. We intend to maintain and, over time, grow our dividend as we continue to delever and build long-term value.” CFO David Denton placed the dividend ahead of buybacks, and no repurchases are planned for 2026 despite $3.3 billion in remaining authorization.
Verdict: Safe for Now, but Watch the Cash Flow Dividend Safety Rating: Moderate Risk. The earnings payout is fine, management is vocal, and Q1 2026 revenue grew 5.4% with launched and acquired products up 22% operationally. An FCF payout above 100% and elevated leverage complicate the safe-haven label. The dividend thesis strengthens if oncology and the Metsera obesity ramp push free cash flow back above $10 billion. The risk profile worsens if 2027 FCF coverage stays under 1.0x while Eliquis erosion accelerates.
Pfizer (PFE - Free Report) closed at $26.14 in the latest trading session, marking a +2.11% move from the prior day. This move outpaced the S&P 500's daily gain of 1.75%. Elsewhere, the Dow gained 1.86%, while the tech-heavy Nasdaq added 2.54%.
Heading into today, shares of the drugmaker had lost 1.39% over the past month, lagging the Medical sector's gain of 3.73% and outpacing the S&P 500's loss of 1.63%.
Investors will be eagerly watching for the performance of Pfizer in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.68, showcasing a 12.82% downward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $14.4 billion, down 1.71% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $2.99 per share and a revenue of $61.64 billion, demonstrating changes of -7.14% and -1.5%, respectively, from the preceding year.
Investors should also take note of any recent adjustments to analyst estimates for Pfizer. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.24% increase. At present, Pfizer boasts a Zacks Rank of #3 (Hold).
With respect to valuation, Pfizer is currently being traded at a Forward P/E ratio of 8.57. For comparison, its industry has an average Forward P/E of 15.3, which means Pfizer is trading at a discount to the group.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 83, which puts it in the top 35% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
Pharmaceutical giants Novo Nordisk (NVO 0.13%) and Eli Lilly (LLY 2.05%) are still the two titans of the weight loss drug market, to be sure. Lilly sold $13.5 billion worth of GLP-1-based Zepbound last year, while Novo reported revenue of more than $30 billion (U.S.) from its anti-obesity drugs Wegovy and Ozempic, with its weight loss arm experiencing year-over-year sales growth of more than 26%.
As is so often the case, though, would-be competitors aren't simply letting market leaders have unfettered access to a market that Morgan Stanley now believes will grow to a stunning $150 billion per year by 2035.
Drugmaker Pfizer (PFE +0.10%) is throwing its hat into the ring as well, recently offering a developmental update that should concern Novo Nordisk, Eli Lilly, and the shareholders of this weight-loss drug duopoly. Let's see what this could mean for all three companies.
Less is more It's called berobenatide. In many ways, it's like the aforementioned Wegovy and Zepbound, as it leverages the GLP-1 (glucagon-like peptide-1) receptor pathway to induce weight loss. And it's administered by subcutaneous injection.
There is one big way Pfizer's anti-obesity drug berobenatide -- also known as PF-08653944 -- differs from Wegovy, Ozempic, and Zepbound, though. That is, whereas Lilly's and Novo's treatments are injected weekly, Pfizer's GLP-1 receptor agonist requires only a monthly injection to achieve comparable weight-loss results.
Image source: Getty Images.
That's what the developmental update, unveiled recently at the 86th Scientific Sessions of the American Diabetes Association, suggests, anyway. As the company's corresponding press release explains, the drug's phase 2b trials successfully "highlight the potential for monthly delivery in a patient-friendly presentation with a very low 0.5 mL injection volume that provides convenience and scalability advantages" for patients with or without type 2 diabetes. It's also about as well tolerated as alternatives.
There are some measurable trade-offs, of course. While this particular study showed a typical weight loss of 15.9% at the 32-week mark, patients might do slightly better with Novo Nordisk's or Eli Lilly's GLP-1 options as part of a clinically managed or carefully followed treatment regimen.
However, given that its average weight loss reflects a wide range of inputs that may or may not be affected by deviations from a dosing or diet regimen, some patients could conceivably achieve better personal results. Some observers also argue that berobenatide may produce better net weight loss in the long run simply because it's easier to stick to its corresponding weight-loss plan.
The trial's results also affirm the idea that this drug may be effective at maintaining a lower weight once a user's weight-loss goal has been met.
The rest of the story is even more compelling It's an obvious win for Pfizer. But even a late-phase 2b win for a single drug in its R&D pipeline isn't exactly game-changing for the company. There's still phase 3 testing to be done, which is not only time-consuming, but puts previous-stage results to the test on a wider scale. Veteran investors know all too well that the FDA can often spot something it doesn't like late in a drug's development that it didn't notice before.
Just understand that this same anti-obesity treatment -- berobenatide -- isn't just in one single mid-stage trial right now. It's currently undergoing a handful of similar trials as a weight-loss drug and a type 2 diabetes treatment, some of which are phase 3 trials -- the final stage before seeking regulatory approval. The market's already familiar with this drug and its safety profile. The recent update of its efficacy as a once-monthly, low-dose injection simply bolsters the overall optimism surrounding this drug, ultimately acquired with Pfizer's 2025 acquisition of drugmaker Metsera.
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In a similar vein, Pfizer's update on phase 2b testing of low monthly doses of berobenatide gives the company another chance to tout that it actually has 10 different trials of this drug in or entering phase 3 by the end of this year. Moreover, it's got more than 20 anti-obesity treatments currently in the works at various stages of development.
Connect the dots. Pfizer is positioning to compete with Lilly and Novo. And it will be able to do so, even if only a handful of these trials meet their phase 3 targets.
Much to think about, and far too much to simply ignore Just keep your expectations in check. Multiple trials means multiple launches of the drug, each with a narrowly range of approved uses. Pfizer's obesity business will only build slowly and won't begin making major contributions to the top and bottom lines for at least a few years.
As CEO Albert Bourla commented in the company's recent Q1 earnings conference call, "Starting in 2029, we will enter a five-year period of high single-digit revenue CAGR," with much of its growth from that point on being driven by recent acquisitions like Matsera. The three years between now and then, however, are going to remain mostly unimpressive as the company continues to struggle with the sharp wind-down of its once-red-hot COVID-19 drug business.
The market has a funny way of predicting and reflecting those predictions in stock prices -- well in advance, though.
Whatever the case, even what's just moderately bullish for Pfizer is more bearish for Eli Lilly and Novo Nordisk. Pfizer is introducing competition to the weight-loss drug market, which is already seeing slowing growth. If nothing else, the eventual launch of berobenatide will further erode the already-waning pricing power of Wegovy, Ozempic, and Zepbound. And Pfizer isn't the only outfit working on an alternative anti-obesity drug either.
Given that Lilly and Novo shares have been priced at a premium largely on the potential of their weight-loss drugs, Pfizer's update is an important reminder that nothing lasts forever. Shareholders of either company will most definitely want to keep close tabs on the ongoing development of berobenatide. It's a brewing problem, to be sure.
