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Veeva Systems (VEEV) Registers a Bigger Fall Than the Market: Important Facts to Note

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Veeva Systems (VEEV - Free Report) closed at $281.00 in the latest trading session, marking a -1.16% move from the prior day. The stock's performance was behind the S&P 500's daily loss of 0.79%. On the other hand, the Dow registered a loss of 0.94%, and the technology-centric Nasdaq decreased by 0.92%.

Shares of the provider of cloud-based software services for the life sciences industry have depreciated by 0.37% over the course of the past month, underperforming the Medical sector's gain of 1.49%, and the S&P 500's gain of 5.22%.

Investors will be eagerly watching for the performance of Veeva Systems in its upcoming earnings disclosure. The company is expected to report EPS of $1.9, up 17.28% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $767.61 million, indicating a 13.52% growth compared to the corresponding quarter of the prior year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $7.64 per share and a revenue of $3.09 billion, indicating changes of +15.76% and +12.65%, respectively, from the former year.

Any recent changes to analyst estimates for Veeva Systems should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.6% upward. As of now, Veeva Systems holds a Zacks Rank of #2 (Buy).

Looking at valuation, Veeva Systems is presently trading at a Forward P/E ratio of 37.19. For comparison, its industry has an average Forward P/E of 29.66, which means Veeva Systems is trading at a premium to the group.

It is also worth noting that VEEV currently has a PEG ratio of 1.6. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Medical Info Systems industry currently had an average PEG ratio of 2.75 as of yesterday's close.

The Medical Info Systems industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 82, placing it within the top 34% of over 250 industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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