Back to top

Image: Bigstock

Veeva (VEEV) Surges 5.2%: Is This an Indication of Further Gains?

Read MoreHide Full Article

Veeva Systems (VEEV - Free Report) shares ended the last trading session 5.2% higher at $235. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 6.3% gain over the past four weeks.

The sharp upsurge in VEEV shares can be attributed to positive market sentiment surrounding its strong recent financial performance. The company has shown impressive growth, with a year-to-date returns of 22%. Investors seem to be optimistic about Veeva Systems’ ongoing profitability and revenue increases, which have been consistent and also likely to reflect in the upcoming earnings as well.

This provider of cloud-based software services for the life sciences industry is expected to post quarterly earnings of $1.57 per share in its upcoming report, which represents a year-over-year change of +17.2%. Revenues are expected to be $683.69 million, up 10.9% 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 #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Veeva is a member of the Zacks Internet - Software industry. One other stock in the same industry, nCino (NCNO - Free Report) , finished the last trading session 1.3% higher at $42.53. NCNO has returned 25.5% over the past month.

nCino's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.16. Compared to the company's year-ago EPS, this represents a change of +14.3%. nCino currently boasts a Zacks Rank of #4 (Sell).


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Veeva Systems Inc. (VEEV) - free report >>

nCino Inc. (NCNO) - free report >>

Published in