Veeva Systems (VEEV) Falls More Steeply Than Broader Market: What Investors Need to Know
Veeva Systems (VEEV) closed the latest trading day at $173.33, indicating a -1.83% change from the previous session's end. The stock's performance was behind the S&P 500's daily loss of 0.2%. Elsewhere, the Dow saw a downswing of 0.16%, while the tech-heavy Nasdaq depreciated by 0.07%.
The provider of cloud-based software services for the life sciences industry's stock has dropped by 6.83% in the past month, falling short of the Computer and Technology sector's gain of 8.27% and the S&P 500's gain of 7.49%.
The investment community will be paying close attention to the earnings performance of Veeva Systems in its upcoming release. The company is slated to reveal its earnings on December 6, 2023. The company is forecasted to report an EPS of $1.28, showcasing a 13.27% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $615.92 million, reflecting a 11.51% rise from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $4.68 per share and a revenue of $2.36 billion, indicating changes of +9.35% and +9.49%, respectively, from the former year.
Any recent changes to analyst estimates for Veeva Systems should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.53% decrease. At present, Veeva Systems boasts a Zacks Rank of #3 (Hold).
Digging into valuation, Veeva Systems currently has a Forward P/E ratio of 37.72. Its industry sports an average Forward P/E of 36.29, so one might conclude that Veeva Systems is trading at a premium comparatively.
Meanwhile, VEEV's PEG ratio is currently 1.53. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 1.61.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 32, which puts it in the top 13% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Veeva Systems Inc. (VEEV) : Free Stock Analysis Report
