Veeva Systems (VEEV) Outpaces Stock Market Gains: What You Should Know
Veeva Systems (VEEV) closed the most recent trading day at $250.30, moving +1.64% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.29%. At the same time, the Dow lost 0.24%, and the tech-heavy Nasdaq gained 0.28%.
Prior to today's trading, shares of the provider of cloud-based software services for the life sciences industry had gained 8.01% over the past month. This has outpaced the Computer and Technology sector's gain of 4.98% and the S&P 500's gain of 2.96% in that time.
Wall Street will be looking for positivity from VEEV as it approaches its next earnings report date. The company is expected to report EPS of $0.64, up 16.36% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $339.69 million, up 27.27% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.55 per share and revenue of $1.39 billion. These totals would mark changes of +16.44% and +25.82%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for VEEV. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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 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. Within the past 30 days, our consensus EPS projection has moved 0.63% higher. VEEV is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note VEEV's current valuation metrics, including its Forward P/E ratio of 96.68. This valuation marks a premium compared to its industry's average Forward P/E of 69.19.
Also, we should mention that VEEV has a PEG ratio of 5.67. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Software was holding an average PEG ratio of 3.67 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 75, putting it in the top 30% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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