Veeva Systems (VEEV) Suffers a Larger Drop Than the General Market: Key Insights
Veeva Systems (VEEV) ended the recent trading session at $204.24, demonstrating a -1.24% swing from the preceding day's closing price. The stock fell short of the S&P 500, which registered a loss of 0.32% for the day. Elsewhere, the Dow saw a downswing of 0.71%, while the tech-heavy Nasdaq depreciated by 0.2%.
Prior to today's trading, shares of the provider of cloud-based software services for the life sciences industry had gained 11.37% over the past month. This has outpaced the Computer and Technology sector's gain of 9.33% and the S&P 500's gain of 4.59% in that time.
The investment community will be paying close attention to the earnings performance of Veeva Systems in its upcoming release. On that day, Veeva Systems is projected to report earnings of $1.30 per share, which would represent year-over-year growth of 13.04%. Simultaneously, our latest consensus estimate expects the revenue to be $620.75 million, showing a 10.18% escalation compared to the year-ago quarter.
Investors should also pay attention to any latest changes in analyst estimates for Veeva Systems. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.53% higher. Veeva Systems currently has a Zacks Rank of #2 (Buy).
From a valuation perspective, Veeva Systems is currently exchanging hands at a Forward P/E ratio of 37.3. This valuation marks a premium compared to its industry's average Forward P/E of 31.21.
Investors should also note that VEEV has a PEG ratio of 1.51 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Internet - Software industry stood at 1.68 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 80, putting it in the top 32% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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Veeva Systems Inc. (VEEV) : Free Stock Analysis Report
