Consider Teva While It's Down

While healthcare stocks have been both in and out of favor this year, depending on the market's view of cyclicals vs. defensives, Teva Pharmaceuticals (TEVA) has consistently been a laggard compared with both the market and its group. Teva is up just 2.5% year to date, compared with the S&P 500 up 10.3% and the pharma industry up 20%. Nevertheless, we have liked Teva and still do, since we believe that the company and its stock are both poorly understood by investors.

The core of the company is its generic drug business, and this is how it is primarily perceived. Historically, Teva has played the patent-challenge game better than anyone else, and it has used the profits generated from its first-to-file success and its proprietary drug business to fund the purchases of other generics makers....563 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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