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Veeva Systems (VEEV) Outpaces Stock Market Gains: What You Should Know

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In the latest trading session, Veeva Systems (VEEV) closed at $105.49, marking a +1.78% move from the previous day. This move outpaced the S&P 500's daily gain of 0.14%. Elsewhere, the Dow lost 0.09%, while the tech-heavy Nasdaq added 0.68%.

Prior to today's trading, shares of the provider of cloud-based software services for the life sciences industry had gained 19.23% over the past month. This has outpaced the Computer and Technology sector's gain of 8.09% and the S&P 500's gain of 9.43% in that time.

VEEV will be looking to display strength as it nears its nex t earnings release, which is expected to be February 26, 2019. On that day, VEEV is projected to report earnings of $0.40 per share, which would represent year-over-year growth of 73.91%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $227.54 million, up 23.05% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.58 per share and revenue of $857.28 million. These totals would mark changes of +69.89% and +25.05%, respectively, from last year.

Any recent changes to analyst estimates for VEEV should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection remained stagnant. VEEV currently has a Zacks Rank of #1 (Strong Buy).

Investors should also note VEEV's current valuation metrics, including its Forward P/E ratio of 65.6. Its industry sports an average Forward P/E of 49.15, so we one might conclude that VEEV is trading at a premium comparatively.

Investors should also note that VEEV has a PEG ratio of 3.37 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Software industry currently had an average PEG ratio of 2.52 as of yesterday's close.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 26, putting it in the top 11% 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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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