In the latest trading session, Veeva Systems (VEEV) closed at $154.12, marking a +0.45% move from the previous day. This change outpaced the S&P 500's 0.17% gain on the day. At the same time, the Dow 0%, and the tech-heavy Nasdaq gained 0.11%.
Prior to today's trading, shares of the provider of cloud-based software services for the life sciences industry had gained 3.21% over the past month. This has lagged the Computer and Technology sector's gain of 4.62% and outpaced the S&P 500's gain of 2.78% in that time.
VEEV will be looking to display strength as it nears its next earnings release, which is expected to be March 3, 2020. The company is expected to report EPS of $0.52, up 15.56% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $297.70 million, up 28.14% from the year-ago period.
It is also important to note the recent changes to analyst estimates for VEEV. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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 has moved 0.73% lower within the past month. VEEV currently has a Zacks Rank of #4 (Sell).
Investors should also note VEEV's current valuation metrics, including its Forward P/E ratio of 60.81. This valuation marks a premium compared to its industry's average Forward P/E of 49.91.
Also, we should mention that VEEV has a PEG ratio of 2.78. 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. Internet - Software stocks are, on average, holding a PEG ratio of 2.54 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 76, putting it in the top 30% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.