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Veeva Systems (VEEV) Stock Sinks As Market Gains: What You Should Know

Zacks Equity Research
·3 mins read

In the latest trading session, Veeva Systems (VEEV) closed at $277.04, marking a -1.48% move from the previous day. This change lagged the S&P 500's daily gain of 0.53%. Elsewhere, the Dow gained 0.13%, while the tech-heavy Nasdaq added 1.42%.

Prior to today's trading, shares of the provider of cloud-based software services for the life sciences industry had lost 5.35% over the past month. This has lagged the Computer and Technology sector's loss of 5.06% and the S&P 500's loss of 3.76% in that time.

VEEV will be looking to display strength as it nears its next earnings release. On that day, VEEV is projected to report earnings of $0.68 per share, which would represent year-over-year growth of 13.33%. Meanwhile, our latest consensus estimate is calling for revenue of $361.46 million, up 28.67% from the prior-year quarter.

VEEV's full-year Zacks Consensus Estimates are calling for earnings of $2.68 per share and revenue of $1.42 billion. These results would represent year-over-year changes of +22.37% and +28.61%, respectively.

Any recent changes to analyst estimates for VEEV should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

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 currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, VEEV is holding a Forward P/E ratio of 104.92. This valuation marks a premium compared to its industry's average Forward P/E of 80.14.

It is also worth noting that VEEV currently has a PEG ratio of 6.87. 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. The Internet - Software industry currently had an average PEG ratio of 6.39 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 174, which puts it in the bottom 32% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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