Veeva Systems (VEEV) Gains As Market Dips: What You Should Know
In the latest trading session, Veeva Systems (VEEV) closed at $332.78, marking a +0.02% move from the previous day. This change outpaced the S&P 500's 0.18% loss on the day.
Coming into today, shares of the provider of cloud-based software services for the life sciences industry had gained 5.25% in the past month. In that same time, the Computer and Technology sector gained 3.16%, while the S&P 500 gained 2.44%.
Investors will be hoping for strength from VEEV as it approaches its next earnings release. In that report, analysts expect VEEV to post earnings of $0.86 per share. This would mark year-over-year growth of 19.44%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $451.2 million, up 27.57% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.50 per share and revenue of $1.82 billion. These totals would mark changes of +19.05% and +24.39%, respectively, from last year.
Investors should also note any 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. 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. Within the past 30 days, our consensus EPS projection remained stagnant. VEEV is currently sporting a Zacks Rank of #2 (Buy).
Digging into valuation, VEEV currently has a Forward P/E ratio of 95.14. Its industry sports an average Forward P/E of 62.66, so we one might conclude that VEEV is trading at a premium comparatively.
Investors should also note that VEEV has a PEG ratio of 6.01 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 3.63 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 184, putting it in the bottom 28% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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Veeva Systems Inc. (VEEV) : Free Stock Analysis Report
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