Veeva Systems (VEEV) Outperforms Broader Market: What You Need to Know
Veeva Systems (VEEV) closed at $209.38 in the latest trading session, marking a +1.08% move from the prior day. The stock exceeded the S&P 500, which registered a gain of 0.22% for the day. Elsewhere, the Dow gained 0.36%, while the tech-heavy Nasdaq added 0.32%.
The provider of cloud-based software services for the life sciences industry's shares have seen an increase of 8.54% over the last month, surpassing the Computer and Technology sector's gain of 3.64% and the S&P 500's gain of 1.61%.
Market participants will be closely following the financial results of Veeva Systems in its upcoming release. The company's earnings per share (EPS) are projected to be $1.30, reflecting a 13.04% increase from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $620.75 million, indicating a 10.18% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $4.76 per share and a revenue of $2.35 billion, demonstrating changes of +11.21% and +9.22%, respectively, from the preceding year.
Investors might also notice recent changes to analyst estimates for Veeva Systems. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.44% higher. Veeva Systems currently has a Zacks Rank of #2 (Buy).
In terms of valuation, Veeva Systems is currently trading at a Forward P/E ratio of 43.52. This valuation marks a premium compared to its industry's average Forward P/E of 34.11.
We can additionally observe that VEEV currently boasts a PEG ratio of 1.77. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 1.76.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 58, placing it within the top 24% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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
