Here's Why You Should Add Veeva (VEEV) to Your Portfolio Now
Veeva Systems Inc. VEEV is likely to gain from solid fiscal third-quarter 2020 results and a slew of positive developments in recent times.
Shares of this company have rallied 59.4% compared with the industry’s 15.1% rise in a year’s time. The current level also compares favorably with the S&P 500 index’s 15.7% gain over the same time frame.
This $22.69-billion pharmacy innovation company currently has a Zacks Rank #2 (Buy). Veeva’s earnings are expected to grow 19% in the next five years. Also, the company has a trailing four-quarter positive earnings surprise of 11.7%, on average.
The stock also has a Momentum Score of A. Our research shows that stocks with a Momentum Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2, are better picks than most.
Let’s take a closer look at the factors that are working in favor of the company right now.
Q3 Results, Guidance & Developments
In the recently reported fiscal third quarter, Veeva came up with an earnings surprise of 11.1%.
The company reported earnings per share of 60 cents. The metric shot up 33.3% on a year-over-year basis.
Revenues totaled $280.9 million, outpacing the Zacks Consensus Estimate of $275.4 million. On a year-over-year basis, the top line improved 25%.
Notably, Veeva gained significantly from Subscription services and Professional services units. This also encouraged the company to raise its revenue guidance for fiscal 2020.
The company projects revenues within $1,088 million and $1,091 million, higher than the earlier projected range of $1,062 million to $1,065 million.
That’s not all. A series of developments is expected to aid the stock as well.
This month, German herbal remedy manufacturer Bionorica SE selected multichannel Veeva CRM to streamline business processes and improve customer interactions globally. The company also selected Veeva OpenData for reliable, complete customer data to help field teams deliver more focused interactions with healthcare professionals.
Earlier this month, Veeva announced the acquisition of Physicians World, a leading provider of bureau services. The collaboration is likely to provide a complete solution to plan and execute live and virtual events for healthcare professionals.
Veeva Systems Inc. Price and Consensus
Additionally, Almirall, a Spanish pharmaceutical company recently selected multichannel Veeva CRM to deliver seamless customer experience across all channels as it shifts business focus to specialty medicine.
Given the trend, we can say that Veeva is successfully expanding its customer base in the global markets.
Which Way Are Estimates Headed?
For fiscal 2020, the Zacks Consensus Estimate for revenues is pegged at $1.09 billion, indicating an improvement of 26.4% from the year-ago quarter’s reported figure. For adjusted earnings, the same stands at $2.13 per share, suggesting growth of 30.7% from the year-ago reported figure.
Other Stocks to Consider
Other top-ranked stocks from the broader medical space are Conmed Corporation CNMD, Cardinal Health, Inc. CAH and DENTSPLY SIRONA Inc. XRAY, each currently carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Conmed Corporation has a long-term earnings growth rate of 17%.
Cardinal Health has a long-term earnings growth rate of 6.2%.
DENTSPLY SIRONA has a long-term earnings growth rate of 11.6%.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through Q3 2019, while the S&P 500 gained +39.6%, five of our strategies returned +51.8%, +57.5%, +96.9%, +119.0%, and even +158.9%.
This outperformance has not just been a recent phenomenon. From 2000 – Q3 2019, while the S&P averaged +5.6% per year, our top strategies averaged up to +54.1% per year.
Click to get this free report
Veeva Systems Inc. (VEEV): Free Stock Analysis Report
CONMED Corporation (CNMD): Free Stock Analysis Report
DENTSPLY SIRONA Inc. (XRAY): Free Stock Analysis Report
Cardinal Health, Inc. (CAH): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Latest Markets Videos
- Stimulus Update: MIllions Will Get a Stimulus Check in June. Are You One of Them?
- Is the Stock Market Open on Independence Day 2022?
- Social Security Checks Could Soar in 2023: Here's How Much Extra Seniors Might Receive
- Used Car Prices Are Starting to Drop From All-Time Highs. Is the Worst Behind Us?