In the latest trading session, Veeva Systems (VEEV) closed at $144.78, marking a +1.76% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.19%. At the same time, the Dow lost 0.11%, and the tech-heavy Nasdaq gained 0.81%.
Prior to today's trading, shares of the provider of cloud-based software services for the life sciences industry had lost 8.39% over the past month. This has lagged the Computer and Technology sector's gain of 0.15% and the S&P 500's gain of 0.56% in that time.
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 $0.54 per share. This would mark year-over-year growth of 20%. Meanwhile, our latest consensus estimate is calling for revenue of $275.35 million, up 22.52% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.12 per share and revenue of $1.07 billion. These totals would mark changes of +30.06% and +23.94%, respectively, from last year.
Any recent changes to analyst estimates for VEEV should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. VEEV currently has a Zacks Rank of #3 (Hold).
Investors should also note VEEV's current valuation metrics, including its Forward P/E ratio of 66.98. For comparison, its industry has an average Forward P/E of 52.82, which means VEEV is trading at a premium to the group.
It is also worth noting that VEEV currently has a PEG ratio of 3.52. 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 2.81 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 53, which puts it in the top 21% 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.
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