Veeva Systems Inc. (VEEV Quick QuoteVEEV - Free Report) is well-poised for growth in the coming quarters, courtesy of its strong product portfolio. The optimism led by a solid first-quarter fiscal 2025 performance and strategic deals are expected to contribute further. Stiff competition and data security threats persist.

Over the past year, this Zacks Rank #3 (Hold) stock has lost 7.7% against 29.4% growth of the industry and a 15.6% rise of the S&P 500 Composite.

The renowned provider of cloud-based software applications and data solutions for the life sciences industry has a market capitalization of $30.03 billion. The company projects 24.3% growth for the next five years and expects to maintain its strong performance. It delivered an earnings surprise of 5.9% in the past four quarters, on average.

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Let’s delve deeper.

Strong Q1 Results: Veeva Systems’ solid first-quarter fiscal 2025 results buoy optimism. The company saw an uptick in the overall top and bottom lines and robust performances by both segments during the quarter. In Veeva Vault Quality, VEEV added 15 Vault QualityDocs customers, including a large, multinational contract development and manufacturing organization, as they modernize operations and continue to scale.

Strong Product Portfolio: We are optimistic about Veeva Systems’ unique solutions, which include Veeva Vault, Veeva CRM (customer relationship management), Veeva Network and Veeva OpenData.

In May, the company announced the availability of Veeva Vault Basics, a new offering that includes technology, training and support designed for biotechs.

Strategic Deals: We are upbeat about Veeva Systems’ inking of a slew of notable deals. This month, the company announced that Hangzhou Tigermed Consulting Co., Ltd. has selected Veeva Vault EDC as its technology foundation for modern electronic data capture (EDC).

In February, Veeva Systems announced that Boehringer Ingelheim had selected Veeva Vault Clinical and Veeva Vault RIM applications as its technology foundation for clinical and regulatory management in its animal health business unit.

Downsides

Data Security Threats: Veeva Systems’ solutions involve the storage and transmission of its customers’ proprietary information and personal information of medical professionals, patients and clinical trial participants, and other sensitive information. Unauthorized access or other security breaches or incidents could damage the company’s reputation. The company may be unable to adequately anticipate security threats or implement adequate preventative measures, in part because the techniques used to obtain unauthorized access or sabotage systems change frequently and are becoming increasingly sophisticated and complex, and generally are not identified until they are launched against a target.

Stiff Competition: Veeva Systems operates in a highly competitive market. In new sales cycles within the company’s largest product categories, it competes with other cloud-based solutions from providers that make applications for the life sciences industry. The company’s Commercial Cloud and Veeva Vault application suites also compete to replace client-server-based legacy solutions offered by large companies and other smaller application providers.

Estimate Trend

Veeva Systems is witnessing a positive estimate revision trend for fiscal 2025. In the past 90 days, the Zacks Consensus Estimate for its earnings has moved 1.3% north to $6.15.

The Zacks Consensus Estimate for the company’s second-quarter fiscal 2025 revenues is pegged at $667.9 million, indicating a 13.2% improvement from the year-ago quarter’s reported number.

Key Picks

Some better-ranked stocks in the broader medical space are DaVita Inc. (DVA Quick QuoteDVA - Free Report) , Boston Scientific Corporation (BSX Quick QuoteBSX - Free Report) and Ecolab Inc. (ECL Quick QuoteECL - Free Report) .

DaVita, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 13.6%. DVA’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 29.4%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

DaVita’s shares have gained 43.8% compared with the industry’s 16.4% rise in the past year.

Boston Scientific, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 12.5%. BSX’s earnings surpassed estimates in each of the trailing four quarters, with the average being 7.5%.

Boston Scientific has gained 42.2% against the industry’s 0.9% decline in the past year.

Ecolab, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 14.3%. ECL’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 1.3%.

Ecolab’s shares have rallied 30.9% against the industry’s 12.2% decline in the past year.