Veeva Systems (VEEV) closed at $294.12 in the latest trading session, marking a +1.16% move from the prior day. This change outpaced the S&P 500’s 0.88% gain on the day. At the same time, the Dow added 0.57%, and the tech-heavy Nasdaq gained 1.39%.
Heading into today, shares of the provider of cloud-based software services for the life sciences industry had gained 8.65% over the past month, outpacing the Computer and Technology sector’s gain of 4.73% and the S&P 500’s gain of 3.54% in that time.
VEEV will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.68, up 13.33% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $361.46 million, up 28.67% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.68 per share and revenue of $1.42 billion, which would represent changes of +22.37% and +28.61%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for VEEV. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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 remained stagnant. VEEV is currently a Zacks Rank #3 (Hold).
Digging into valuation, VEEV currently has a Forward P/E ratio of 108.49. This represents a premium compared to its industry’s average Forward P/E of 83.61.
Meanwhile, VEEV’s PEG ratio is currently 7.1. 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. VEEV’s industry had an average PEG ratio of 6.48 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 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Veeva Systems Inc. (VEEV): Free Stock Analysis Report
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