Veeva Systems (VEEV) closed at $148.89 in the latest trading session, marking a -0.66% move from the prior day. This change lagged the S&P 500's 0.28% gain on the day. Elsewhere, the Dow gained 0.09%, while the tech-heavy Nasdaq added 0.4%.
Prior to today's trading, shares of the provider of cloud-based software services for the life sciences industry had gained 2.22% over the past month. This has outpaced the Computer and Technology sector's gain of 0.51% and the S&P 500's loss of 0.14% in that time.
Investors will be hoping for strength from VEEV as it approaches its next earnings release. In that report, analysts expect VEEV to post earnings of $0.54 per share. This would mark year-over-year growth of 20%. Meanwhile, our latest consensus estimate is calling for revenue of $275.35 million, up 22.52% from the prior-year quarter.
VEEV's full-year Zacks Consensus Estimates are calling for earnings of $2.12 per share and revenue of $1.07 billion. These results would represent year-over-year changes of +30.06% and +23.94%, respectively.
Investors should also note any recent changes to analyst estimates for VEEV. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.57% 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 70.57. For comparison, its industry has an average Forward P/E of 55.56, which means VEEV is trading at a premium to the group.
It is also worth noting that VEEV currently has a PEG ratio of 3.7. 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 2.66 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.
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