Why Veeva Systems (VEEV) is an Attractive Pick Right Now?

Veeva Systems Inc. VEEV has been investors’ favorite, courtesy of its continued impressive performances. The company benefits from growing demand for cloud-based and vault applications, new product launches, its industry focus approach and international expansion.

Moreover, this Zacks Rank #2 (Buy) stock has an encouraging earnings surprise history, having outpaced the Zacks Consensus Estimate in each of the trailing four quarters, the average being 13.9%. Notably, this trend of consecutive beats underlines its operating efficiency.

In a year’s time, Veeva Systems has rallied 69.9%, outperforming the industry’s 19.3% growth and the S&P 500’s 6.5% gain. With solid prospects, it is an attractive investment pick for investors right now.

What’s Working in Favor?

Veeva Systems’ unique solutions include Veeva Vault, Veeva CRM, Veeva Network and Veeva OpenData. Veeva Vault is the first cloud-based content management system, built specifically for the life sciences. Veeva CRM is a customer relationship management platform that offers cloud-based solutions to reach customers on any channel. Notably, the company has announced mobile innovations in the Veeva CRM platform, which provides information to field teams from any device. Furthermore, New Jersey-based Merck is expanding its use of multichannel Veeva CRM to additional markets, including Latin America and the Asia Pacific.

Another new cloud application of the company is Veeva Vault Training, designed to simplify role-based training across life sciences organizations and help quality teams remain audit-ready and compliant.

Veeva Systems Inc. Price and Consensus


Veeva Systems Inc. Price and Consensus | Veeva Systems Inc. Quote

Meanwhile, Veeva Network is a master data management platform that provides global, single-instance customer and product master solution.

For first-quarter fiscal 2020, Veeva Systems expects total revenues between $238 million and $239 million. Adjusted earnings per share are expected between 44 cents and 45 cents. Adjusted operating income is projected in the $85-$86 million band.

For fiscal 2020, revenues are expected between $1.02 billion and $1.03 billion. Adjusted earnings per share are anticipated in the range of $1.91-$1.94 in the same period.

Management expects Subscription revenue growth of 21-22% in fiscal 2020. Commercial Cloud subscription revenues are expected to rise 10%.

Which Way Are Estimates Trending?

The Zacks Consensus Estimate for fiscal 2020 earnings is pegged at 77 cents, reflecting 10% growth year over year. The same for revenues stands at $527 million.

Bottom Line

Veeva Systems seems to be well-positioned for growth on strong guidance and solid product portfolio. The company's long-term earnings growth rate of 14.8% also supports this view.

Other Stocks to Consider

Other top-ranked stocks from the MedTech space are DexCom, Inc. DXCM, Varian Medical Systems, Inc. VAR and Masimo Corporation MASI, each carrying a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

DexCom delivered a positive earnings surprise in each of the trailing four quarters, the average being 132.3%.

Varian Medical has a long-term earnings growth rate of 8%.

Masimo Corporation has a long-term earnings growth rate of 15.6%.

Today's Best Stocks from Zacks

Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.

This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.

See their latest picks free >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Veeva Systems Inc. (VEEV): Free Stock Analysis Report
Varian Medical Systems, Inc. (VAR): Free Stock Analysis Report
Masimo Corporation (MASI): Free Stock Analysis Report
DexCom, Inc. (DXCM): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research

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


More Related Articles

Sign up for Smart Investing to get the latest news, strategies and tips to help you invest smarter.