Just spotted something worth paying attention to in the pharma space. Teva Pharmaceutical Industries has been quietly making moves that most investors might be sleeping on right now.

Here's what caught my eye. The company just reported Q4 earnings and honestly, the numbers are pretty solid. Revenue hit $4.7 billion, up 11% year over year, and EPS came in at $0.96 versus analyst expectations around $0.64. For the full year, we're talking 5% revenue growth and nearly 20% adjusted earnings growth. Yeah, there was a $500 million milestone payment from Sanofi that inflated things a bit, but even stripping that out, the underlying business is moving in the right direction.

What's really interesting is the transformation happening behind the scenes. Teva used to be known just for generics, but they're pivoting hard into specialty drugs. Branded products like Austedo, Ajovy, and Uzedy are starting to drive real revenue. The pipeline looks promising too, with duvakitug potentially hitting $2-5 billion in annual sales eventually. Management is talking about over $10 billion in peak sales potential across their pipeline candidates.

Now here's why stocks to invest in right now should include looking at companies in transition like this. Teva's valuation is sitting around 12.5 times forward earnings, which is honestly on the lower end for pharma. The market hasn't fully priced in what happens when these specialty drugs start contributing meaningfully to the revenue mix. If you're thinking multiyear, you haven't missed the window.

The 2026 guidance calls for a slower year, which is why some people might be hesitant. But 2027 is where things could get interesting. Analysts are modeling EPS to potentially hit over $3 per share by then, up roughly 12% from current expectations. That kind of earnings power combined with multiple expansion could mean serious upside for patient investors.

I'm not saying this is a slam dunk, but when you're looking at stocks to invest in right now with real catalysts ahead, Teva deserves a closer look. The transformation narrative is still early, the valuation is reasonable, and the pipeline gives you multiple ways to win. If the stock dips on any market weakness, it could be an even more attractive entry point. This feels like one of those situations where the market is still catching up to what's actually happening in the business.