Veeva Systems (VEEV) Stock Sinks As Market Gains: What You Should Know
Veeva Systems (VEEV) closed at $148.97 in the latest trading session, marking a -1.38% move from the prior day. This move lagged the S&P 500's daily gain of 0.8%. At the same time, the Dow added 0.47%, and the tech-heavy Nasdaq gained 1.12%.
Prior to today's trading, shares of the provider of cloud-based software services for the life sciences industry had lost 3.48% over the past month. This has lagged the Computer and Technology sector's loss of 0.72% and the S&P 500's loss of 1.07% in that time.
VEEV will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.54, up 20% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $275.35 million, up 22.52% from the prior-year quarter.
VEEV's full-year Zacks Consensus Estimates are calling for earnings of $2.12 per share and revenue of $1.07 billion. These results would represent year-over-year changes of +30.06% and +23.67%, respectively.
Investors should also note any 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.34% lower. VEEV is currently a Zacks Rank #3 (Hold).
In terms of valuation, VEEV is currently trading at a Forward P/E ratio of 71.22. This valuation marks a premium compared to its industry's average Forward P/E of 54.01.
Investors should also note that VEEV has a PEG ratio of 3.74 right now. 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 2.55 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 85, putting 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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