Veeva Systems (VEEV) Gains As Market Dips: What You Should Know
In the latest trading session, Veeva Systems (VEEV) closed at $140.79, marking a +1.73% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.21%. Elsewhere, the Dow lost 0.46%, while the tech-heavy Nasdaq lost 0.16%.
Coming into today, shares of the provider of cloud-based software services for the life sciences industry had gained 5.67% in the past month. In that same time, the Computer and Technology sector gained 3.11%, while the S&P 500 gained 2.07%.
Wall Street will be looking for positivity from VEEV as it approaches its next earnings report date. In that report, analysts expect VEEV to post earnings of $0.45 per share. This would mark year-over-year growth of 36.36%. Our most recent consensus estimate is calling for quarterly revenue of $238.68 million, up 22.05% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.94 per share and revenue of $1.03 billion. These totals would mark changes of +19.02% and +19.74%, 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. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. VEEV is currently a Zacks Rank #2 (Buy).
Investors should also note VEEV's current valuation metrics, including its Forward P/E ratio of 71.46. Its industry sports an average Forward P/E of 50.54, so we one might conclude that VEEV is trading at a premium comparatively.
It is also worth noting that VEEV currently has a PEG ratio of 4.83. 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 3.24 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 57, which puts it in the top 23% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
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