Veeva Systems (VEEV Quick QuoteVEEV - Free Report) shares soared 10.1% in the last trading session to close at $291.34. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 6.2% loss over the past four weeks.

Veeva Systems saw a strong price increase, courtesy of its encouraging fiscal first-quarter 2022 results. While reported earnings surpassed the Zacks Consensus Estimate by 16.7%, revenues beat the consensus mark by 5.9%. Market is also optimistic regarding the company’s raised fiscal 2022 revenue and earnings guidance (compared to the prior announcement).

Price and Consensus

This provider of cloud-based software services for the life sciences industry is expected to post quarterly earnings of $0.80 per share in its upcoming report, which represents a year-over-year change of +11.1%. Revenues are expected to be $427.88 million, up 21% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Veeva, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on VEEV going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank 2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>