Veeva Systems (VEEV) closed the most recent trading day at $90.32, moving -1.35% from the previous trading session. This change lagged the S&P 500's daily loss of 0.59%. At the same time, the Dow lost 0.35%, and the tech-heavy Nasdaq lost 0.88%.
Coming into today, shares of the provider of cloud-based software services for the life sciences industry had lost 13.06% in the past month. In that same time, the Computer and Technology sector lost 5.44%, while the S&P 500 lost 4.1%.
Wall Street will be looking for positivity from VEEV as it approaches its next earnings report date. This is expected to be December 4, 2018. The company is expected to report EPS of $0.38, up 52% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $216.19 million, up 22.73% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.48 per share and revenue of $843.19 million. These totals would mark changes of +59.14% and +22.99%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for VEEV. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.26% higher. VEEV currently has a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, VEEV is holding a Forward P/E ratio of 61.87. This valuation marks a discount compared to its industry's average Forward P/E of 62.34.
We can also see that VEEV currently has a PEG ratio of 3.21. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. VEEV's industry had an average PEG ratio of 3.93 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 64, which puts it in the top 25% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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