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Veeva Systems (VEEV) Suffers a Larger Drop Than the General Market: Key Insights

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In the latest trading session, Veeva Systems (VEEV - Free Report) closed at $275.89, marking a -2.04% move from the previous day. This change lagged the S&P 500's daily loss of 0.33%. Elsewhere, the Dow saw a downswing of 0.63%, while the tech-heavy Nasdaq depreciated by 0.22%.

Shares of the provider of cloud-based software services for the life sciences industry have depreciated by 0.18% over the course of the past month, outperforming the Medical sector's loss of 0.32%, and lagging the S&P 500's gain of 4.07%.

The investment community will be paying close attention to the earnings performance of Veeva Systems in its upcoming release. In that report, analysts expect Veeva Systems to post earnings of $1.9 per share. This would mark year-over-year growth of 17.28%. Alongside, our most recent consensus estimate is anticipating revenue of $767.61 million, indicating a 13.52% upward movement from the same quarter last year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $7.64 per share and a revenue of $3.1 billion, indicating changes of +15.76% and +12.78%, respectively, from the former year.

Investors should also note any recent changes to analyst estimates for Veeva Systems. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.6% higher. Veeva Systems presently features a Zacks Rank of #3 (Hold).

Looking at its valuation, Veeva Systems is holding a Forward P/E ratio of 36.85. This expresses a premium compared to the average Forward P/E of 28.25 of its industry.

Also, we should mention that VEEV has a PEG ratio of 1.58. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. VEEV's industry had an average PEG ratio of 2.76 as of yesterday's close.

The Medical Info Systems industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 84, positioning it in the top 35% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within 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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