Three Falling Peaks on Teva Pharmaceuticals
Teva Pharmaceuticals (NYSE: TEVA) has outperformed the vast majority of stocks over the past year. According to Investor Business Daily’s Relative Strength rating, Teva’s stock price has appreciated more than 94% of the stocks in its database over the past year. Unfortunately for shareholders, there is a pattern on the chart that suggests that the stock is ready to fall sharply in the coming month or so.
The pattern is known as a Three Falling Peaks pattern and it is highlighted with the three blue circles on the chart below. In this case, the three peaks have also formed the upper rail of a trend channel with the lows over the last three months connecting as well.
The stock dropped over 19% in three weeks from the August high to the September low and from the September high to the first October low. If the pattern plays out the same way and drops over 19% again, the stock would be under $19.50 this time around.
The fundamentals for Teva are also a factor as the company has lagged in its earnings and sales growth. The company gets a 22 on IBD’s EPS rating and that means that 78% of the companies in its database have experienced better earnings growth. The SMR rating for Teva is a D and that is below average as well.
Teva reported third-quarter earnings on November 2 and that report showed an earnings decline of 32% over last year and a sales drop of 19% from the same quarter of 2017.
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TEVA in +0.89% Uptrend, growing for three consecutive days on October 05, 2026
Moving higher for three straight days is viewed as a bullish sign. Keep an eye on this stock for future growth. Considering data from situations where TEVA advanced for three days, in 225 of 303 cases, the price rose further within the following month. The odds of a continued upward trend are 74%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Aroon Indicator entered an Uptrend today. In 193 of 269 cases where TEVA Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 72%.
Bearish Trend Analysis
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 41 of 59 cases where TEVA's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are 69%.
The Momentum Indicator moved below the 0 level on October 05, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on TEVA as a result. In 48 of 79 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 61%.
The Moving Average Convergence Divergence Histogram (MACD) for TEVA turned negative on September 30, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 41 similar instances when the indicator turned negative. In 29 of the 41 cases the stock turned lower in the days that followed. This puts the odds of success at 71%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where TEVA declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 68%.
TEVA broke above its upper Bollinger Band on September 14, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
The Tickeron Profit vs. Risk Rating rating for this company is 9 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 84, placing this stock better than average.
The Tickeron PE Growth Rating for this company is 11 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is 38 (best 1 - 100 worst), indicating steady price growth. TEVA’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Valuation Rating of 70 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (5.848) is normal, around the industry mean (43.873). P/E Ratio (64.800) is within average values for comparable stocks, (141.710). Projected Growth (PEG Ratio) (0.980) is also within normal values, averaging (2.152). Dividend Yield (0.000) settles around the average of (0.005) among similar stocks. P/S Ratio (2.589) is also within normal values, averaging (178.797).
The Tickeron SMR rating for this company is 72 (best 1 - 100 worst), indicating slightly better than average sales and a considerably profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
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General Information
a manufacturer of generic and proprietary branded pharmaceuticals and active pharmaceutical ingredients
Industry PharmaceuticalsGeneric
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