In the latest trading session, Veeva Systems (VEEV) closed at $174.38, marking a -0.41% move from the previous day. This change lagged the S&P 500's 0.02% gain on the day. Meanwhile, the Dow gained 0.1%, and the Nasdaq, a tech-heavy index, added 0.17%.
Prior to today's trading, shares of the provider of cloud-based software services for the life sciences industry had gained 5.27% over the past month. This has lagged the Computer and Technology sector's gain of 6.42% and outpaced the S&P 500's gain of 4.82% in that time.
Wall Street will be looking for positivity from VEEV as it approaches its next earnings report date. In that report, analysts expect VEEV to post earnings of $0.49 per share. This would mark year-over-year growth of 25.64%. Our most recent consensus estimate is calling for quarterly revenue of $259.31 million, up 23.71% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.03 per share and revenue of $1.05 billion. These totals would mark changes of +24.54% and +21.89%, respectively, from last year.
Any recent changes to analyst estimates for VEEV should also be noted by investors. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. VEEV is currently sporting a Zacks Rank of #2 (Buy).
Digging into valuation, VEEV currently has a Forward P/E ratio of 86.39. This represents a premium compared to its industry's average Forward P/E of 64.77.
Also, we should mention that VEEV has a PEG ratio of 5.65. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Internet - Software stocks are, on average, holding a PEG ratio of 3.09 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 63, which puts it in the top 25% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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