In the latest trading session, Veeva Systems (VEEV) closed at $272.17, marking a +1.47% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.64%. Meanwhile, the Dow gained 1.39%, and the Nasdaq, a tech-heavy index, added 0.52%.
VEEV will be looking to display strength as it nears its next earnings release. In that report, analysts expect VEEV to post earnings of $0.64 per share. This would mark year-over-year growth of 16.36%. Meanwhile, our latest consensus estimate is calling for revenue of $339.69 million, up 27.27% from the prior-year quarter.
VEEV's full-year Zacks Consensus Estimates are calling for earnings of $2.55 per share and revenue of $1.39 billion. These results would represent year-over-year changes of +16.44% and +25.82%, respectively.
It is also important to note the 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 is currently sporting a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that VEEV has a Forward P/E ratio of 105.3 right now. For comparison, its industry has an average Forward P/E of 80.91, which means VEEV is trading at a premium to the group.
Investors should also note that VEEV has a PEG ratio of 6.17 right now. 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. Internet - Software stocks are, on average, holding a PEG ratio of 6.15 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 101, which puts it in the top 40% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Veeva Systems Inc. (VEEV): Free Stock Analysis Report
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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.