Teva Pharmaceutical Industries Ltd. TEVA shares ended the last trading session 5.5% higher at $10.52. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 19.8% gain over the past four weeks.

The share price rise rose likely after Teva announced that the FDA has accepted its regulatory filing seeking approval for AVT04, a generic version of J&J’s blockbuster drug Stelara (ustekinumab) for treating multiple inflammatory diseases. A final decision is expected in second-half 2023. The BLA has been filed as part of a strategic partnership with Alvotech.

This company is expected to post quarterly earnings of $0.67 per share in its upcoming report, which represents a year-over-year change of -13%. Revenues are expected to be $3.9 billion, down 4.8% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Teva Pharmaceutical Industries Ltd., the consensus EPS estimate for the quarter has been revised 1% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on TEVA going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Teva Pharmaceutical Industries Ltd. is a member of the Zacks Medical - Generic Drugs industry. One other stock in the same industry, Doctor Reddy's RDY, finished the last trading session 2.1% higher at $52.70. RDY has returned -3.9% over the past month.

For Doctor Reddy's , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.60. This represents a change of +5.3% from what the company reported a year ago. Doctor Reddy's currently has a Zacks Rank of #2 (Buy).

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