In the latest trading session, Veeva Systems (VEEV) closed at $150.25, marking a +0.62% move from the previous day. This change lagged the S&P 500's 0.64% gain on the day. Elsewhere, the Dow gained 0.57%, while the tech-heavy Nasdaq added 0.6%.
Prior to today's trading, shares of the provider of cloud-based software services for the life sciences industry had gained 4.42% over the past month. This has outpaced the Computer and Technology sector's loss of 1.05% and the S&P 500's loss of 1.87% in that time.
Investors will be hoping for strength from VEEV as it approaches 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 +23.94%, respectively.
It is also important to note the recent changes to analyst estimates for VEEV. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. The Zacks Consensus EPS estimate has moved 0.34% lower within the past month. VEEV currently has a Zacks Rank of #3 (Hold).
In terms of valuation, VEEV is currently trading at a Forward P/E ratio of 70.31. Its industry sports an average Forward P/E of 55.24, so we one might conclude that VEEV is trading at a premium comparatively.
It is also worth noting that VEEV currently has a PEG ratio of 3.69. 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. Internet - Software stocks are, on average, holding a PEG ratio of 2.67 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 83, putting it in the top 33% 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.
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Veeva Systems Inc. (VEEV) : Free Stock Analysis Report
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