Plus, TEVA options are affordably priced at the moment
The shares of Teva Pharmaceutical Industries (NYSE:TEVA) have had a lackluster June, dropping 9.4% for the month so far. Despite the stock's summer struggles, there's a silver lining; this pullback has brought TEVA within a historically bullish trendline that indicates the skid may be short-lived.
According to data from Schaeffer's Senior Quantitative Analyst Rocky White, TEVA has pulled back to within one standard deviation of its 80-day moving average. Within the past three years, two similar signals have occurred, after which the equity enjoyed an average 21-day gain of 4.48%. At last check, Teva stock was up 2% to trade at $11.48, on track to snap a four-day losing streak. The equity is up 16.8% in 2020, but remains a ways off its Feb. 12 annual high of $13.76.
Despite the stock's modest gains in 2020, analysts are hesitant on TEVA. Only five out of 19 sport a "buy" or better rating, while the 12-month consensus price target of $11.53 is a chip-shot away from current levels. Should TEVA snap out of its current slump, a round of overdue upgrades and/or price-target hikes could keep the wind at the equity's back.
With that being said, options could be a prudent play when weighing TEVA's next move. The stock's Schaeffer's Volatility Index (SVI) of 58% stands higher than just 8% of all other readings in its annual range, implying that options players are pricing in relatively low volatility expectations at the moment.