5 Best Middle East and Africa Stocks to Buy According to Hedge Funds

2. Teva Pharmaceutical Industries Limited (NYSE:TEVA)

Number of Hedge Fund Holders: 60

Stock Upside: 10.04%

Teva Pharmaceutical Industries Limited (NYSE:TEVA) is one of the best Middle East and Africa stocks to buy according to hedge funds. On April 29, Teva Pharmaceutical Industries Limited (NYSE:TEVA) reported its Q1 FY2026 earnings, where it revealed that revenue was $4.0 billion for the quarter. This is a 2% year over year increase and a beat against analyst estimates of about $3.79 billion. Non-GAAP diluted EPS was $0.53, a 10% beat against the consensus estimate.

Management hosted an earnings call on the same day and took the time to explain that the revenue beat was powered by the company’s innovative portfolio growing 41% collectively. They added that the EPS beat was tied directly to a better-than-expected gross margin of 52.9%, and that this reflects the growing mix of high-margin innovative products within overall revenue.

CFO Eli Kalif noted during the earnings call that the gross margin outperformed internal expectations due to a favorable product mix within generics as well. The flip side was that non-GAAP operating margin dipped about 50 basis points year on year to 24%, Kalif noted. He explained that this dip was because the company intentionally increased sales and marketing spending to sustain the growth of its innovative portfolio.

Management said in the earnings call that the company had agreed to acquire Amylyx Pharmaceuticals for $700 million upfront plus up to $200 million in commercial milestones. They said that the key asset they want from this transaction is ecopipam, a first-in-class drug candidate for Tourette syndrome in children. Teva plans an FDA NDA submission for this drug candidate in the second half of this year. Management positioned ecopipam as a natural extension of their company’s CNS commercial infrastructure built around AUSTEDO and UZEDY, and noted the product carries an expected gross margin of approximately 80%.

Teva Pharmaceutical Industries Limited (NYSE:TEVA) is an Israeli pharmaceutical company that develops, manufactures, and markets generic medicines, specialty pharmaceuticals, and active pharmaceutical ingredients for patients worldwide. Teva’s portfolio includes treatments for neurological disorders, respiratory diseases, and migraine prevention.