Veeva Systems (VEEV) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Veeva Systems (VEEV) closed at $143.14, marking a +1.76% move from the previous day. This move outpaced the S&P 500's daily gain of 0.85%. Meanwhile, the Dow gained 0.77%, and the Nasdaq, a tech-heavy index, added 1.08%.
Heading into today, shares of the provider of cloud-based software services for the life sciences industry had gained 4.92% over the past month, outpacing the Computer and Technology sector's loss of 4.99% and the S&P 500's loss of 2.06% in that time.
Investors will be hoping for strength from VEEV as it approaches its next earnings release, which is expected to be May 29, 2019. The company is expected to report EPS of $0.45, up 36.36% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $238.68 million, up 22.05% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.94 per share and revenue of $1.03 billion, which would represent changes of +19.02% and +19.74%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for VEEV. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. VEEV currently has a Zacks Rank of #2 (Buy).
Looking at its valuation, VEEV is holding a Forward P/E ratio of 72.63. This represents a premium compared to its industry's average Forward P/E of 59.41.
We can also see that VEEV currently has a PEG ratio of 4.91. 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 3.16 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 87, which puts it in the top 34% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Click to get this free report
Veeva Systems Inc. (VEEV): Free Stock Analysis Report
To read this article on Zacks.com click here.