Veeva Systems (VEEV) closed at $145.42 in the latest trading session, marking a -0.05% move from the prior day. This move was narrower than the S&P 500's daily loss of 0.09%. Elsewhere, the Dow gained 0.04%, while the tech-heavy Nasdaq added 0.06%.
Heading into today, shares of the provider of cloud-based software services for the life sciences industry had gained 3.43% over the past month, lagging the Computer and Technology sector's gain of 4.55% and outpacing the S&P 500's gain of 1.26% in that time.
VEEV will be looking to display strength as it nears its next earnings release. In that report, analysts expect VEEV to post earnings of $0.52 per share. This would mark year-over-year growth of 15.56%. Meanwhile, our latest consensus estimate is calling for revenue of $297.70 million, up 28.14% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.17 per share and revenue of $1.09 billion, which would represent changes of +33.13% and +26.46%, respectively, from the prior year.
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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. VEEV currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, VEEV is holding a Forward P/E ratio of 67.05. For comparison, its industry has an average Forward P/E of 57.68, which means VEEV is trading at a premium to the group.
Meanwhile, VEEV's PEG ratio is currently 3.07. 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. Internet - Software stocks are, on average, holding a PEG ratio of 2.69 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 99, putting it in the top 39% 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.
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