Veeva Systems (VEEV) closed the most recent trading day at $85.52, moving +0.9% from the previous trading session. This move outpaced the S&P 500's daily loss of 1.82%. At the same time, the Dow lost 2.21%, and the tech-heavy Nasdaq lost 1.7%.
Coming into today, shares of the provider of cloud-based software services for the life sciences industry had lost 7.49% in the past month. In that same time, the Computer and Technology sector lost 5.96%, while the S&P 500 lost 2.57%.
Wall Street will be looking for positivity from VEEV as it approaches its next earnings report date. This is expected to be November 28, 2018. In that report, analysts expect VEEV to post earnings of $0.38 per share. This would mark year-over-year growth of 52%. Our most recent consensus estimate is calling for quarterly revenue 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.
Investors should also note any recent changes to analyst estimates for VEEV. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. VEEV is currently sporting a Zacks Rank of #2 (Buy).
Investors should also note VEEV's current valuation metrics, including its Forward P/E ratio of 57.27. Its industry sports an average Forward P/E of 56.87, so we one might conclude that VEEV is trading at a premium comparatively.
Also, we should mention that VEEV has a PEG ratio of 2.97. 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. The Internet - Software industry currently had an average PEG ratio of 2.87 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 36, which puts it in the top 14% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.