In the latest trading session, Veeva Systems (VEEV) closed at $158.11, marking a -1.39% move from the previous day. This move lagged the S&P 500's daily gain of 1.21%. Elsewhere, the Dow gained 0.97%, while the tech-heavy Nasdaq added 1.35%.
Prior to today's trading, shares of the provider of cloud-based software services for the life sciences industry had lost 7.41% over the past month. This has lagged the Computer and Technology sector's loss of 3.41% and the S&P 500's loss of 3.6% in that time.
Investors will be hoping for strength from VEEV as it approaches its next earnings release, which is expected to be August 27, 2019. The company is expected to report EPS of $0.49, up 25.64% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $259.26 million, up 23.69% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.02 per share and revenue of $1.05 billion, which would represent changes of +23.93% and +21.83%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for VEEV. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.17% lower. VEEV is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, VEEV is currently trading at a Forward P/E ratio of 79.2. For comparison, its industry has an average Forward P/E of 52.06, which means VEEV is trading at a premium to the group.
It is also worth noting that VEEV currently has a PEG ratio of 6.38. 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 industry currently had an average PEG ratio of 2.76 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 78, which puts it in the top 31% of all 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.
To follow VEEV in the coming trading sessions, be sure to utilize Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Veeva Systems Inc. (VEEV) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research