Veeva Systems (VEEV) Gains As Market Dips: What You Should Know
Veeva Systems (VEEV) closed at $116.55 in the latest trading session, marking a +0.56% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.22%. Meanwhile, the Dow lost 0.08%, and the Nasdaq, a tech-heavy index, lost 0.36%.
Prior to today's trading, shares of the provider of cloud-based software services for the life sciences industry had gained 22.28% over the past month. This has outpaced the Computer and Technology sector's gain of 10.66% and the S&P 500's gain of 8.17% in that time.
Investors will be hoping for strength from VEEV as it approaches its next earnings release, which is expected to be February 26, 2019. In that report, analysts expect VEEV to post earnings of $0.40 per share. This would mark year-over-year growth of 73.91%. Our most recent consensus estimate is calling for quarterly revenue of $227.54 million, up 23.05% from the year-ago period.
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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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. Within the past 30 days, our consensus EPS projection remained stagnant. VEEV is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, VEEV currently has a Forward P/E ratio of 65.11. For comparison, its industry has an average Forward P/E of 54.21, which means VEEV is trading at a premium to the group.
Also, we should mention that VEEV has a PEG ratio of 3.35. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. VEEV's industry had an average PEG ratio of 2.83 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 37, putting it in the top 15% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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
To read this article on Zacks.com click here.
Zacks Investment Research
