Veeva Systems (VEEV) Outpaces Stock Market Gains: What You Should Know
Veeva Systems (VEEV) ended the recent trading session at $176.78, demonstrating a +1.92% swing from the preceding day's closing price. The stock exceeded the S&P 500, which registered a gain of 0.16% for the day. Meanwhile, the Dow experienced a rise of 0.47%, and the technology-dominated Nasdaq saw an increase of 0.07%.
The provider of cloud-based software services for the life sciences industry's shares have seen a decrease of 16.59% over the last month, not keeping up with the Computer and Technology sector's gain of 5.61% and the S&P 500's gain of 4.02%.
Investors will be eagerly watching for the performance of Veeva Systems in its upcoming earnings disclosure. In that report, analysts expect Veeva Systems to post earnings of $1.27 per share. This would mark year-over-year growth of 12.39%. At the same time, our most recent consensus estimate is projecting a revenue of $615.63 million, reflecting a 11.46% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $4.67 per share and a revenue of $2.36 billion, demonstrating changes of +9.11% and +9.61%, respectively, from the preceding year.
Any recent changes to analyst estimates for Veeva Systems should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection has moved 0.03% lower. Veeva Systems is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Veeva Systems currently has a Forward P/E ratio of 37.12. This expresses a premium compared to the average Forward P/E of 35.19 of its industry.
It's also important to note that VEEV currently trades at a PEG ratio of 1.51. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 1.52.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 54, placing it within the top 22% of over 250 industries.
The Zacks Industry Rank gauges the strength of our individual 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.
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Veeva Systems Inc. (VEEV) : Free Stock Analysis Report
