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Veeva (VEEV) Stock Jumps 3.6%: Will It Continue to Soar?

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Veeva Systems (VEEV - Free Report) shares rallied 3.6% in the last trading session to close at $239.86. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 12.9% loss over the past four weeks.

Veeva Systems scored a strong price increase following the news surfacing that majority of the investors are planning to invest more in cloud applications and infrastructure in 2022. Per a report by Piper Sandler, few technology sectors are growing at 35% year-over-year and that cloud penetration still low at 15%. Further, market is upbeat about Veeva Systems' buyout of Veracity Logic — a cloud software provider for randomization and trial supply management (RTSM) in December 2021. Veeva Systems’ management believes that the buyout is likely to strengthen the company’s clinical offering with flexible and user-friendly RTSM abilities.

This provider of cloud-based software services for the life sciences industry is expected to post quarterly earnings of $0.88 per share in its upcoming report, which represents a year-over-year change of +12.8%. Revenues are expected to be $480.37 million, up 21.1% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with 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 3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>


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