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.
Momentum Indicator for TEVA turns negative, indicating new downward trend
TEVA saw its Momentum Indicator move below the 0 level on July 03, 2025. This is an indication that the stock could be shifting in to a new downward move. Traders may want to consider selling the stock or exploring put options. Tickeron's A.I.dvisor looked at 81 similar instances where the indicator turned negative. In of the 81 cases, the stock moved further down in the following days. The odds of a decline are at .
Technical Analysis (Indicators)
Bearish Trend Analysis
TEVA moved below its 50-day moving average on July 07, 2025 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for TEVA crossed bearishly below the 50-day moving average on July 07, 2025. This indicates that the trend has shifted lower and could be considered a sell signal. In of 17 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
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 of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for TEVA entered a downward trend on July 17, 2025. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 5 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where TEVA advanced for three days, in of 286 cases, the price rose further within the following month. The odds of a continued upward trend are .
TEVA may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Tickeron PE Growth Rating for this company is (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 (best 1 - 100 worst), indicating fairly steady price growth. TEVA’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (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 (2.077) is normal, around the industry mean (62.813). P/E Ratio (22.624) is within average values for comparable stocks, (89.433). Projected Growth (PEG Ratio) (1.594) is also within normal values, averaging (2.987). Dividend Yield (0.000) settles around the average of (0.124) among similar stocks. P/S Ratio (0.982) is also within normal values, averaging (19.385).
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. TEVA’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 92, placing this stock better than average.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is significantly overvalued 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 SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable 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 PharmaceuticalsOther
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