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Veeva Systems (VEEV) Outpaces Stock Market Gains: What You Should Know

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Veeva Systems (VEEV - Free Report) closed at $92.45 in the latest trading session, marking a +1.2% move from the prior day. This change outpaced the S&P 500's 0.65% gain on the day. Meanwhile, the Dow gained 0.79%, and the Nasdaq, a tech-heavy index, added 1.01%.

Coming into today, shares of the provider of cloud-based software services for the life sciences industry had lost 12.5% in the past month. In that same time, the Computer and Technology sector lost 9.21%, while the S&P 500 lost 6.82%.

Wall Street will be looking for positivity from VEEV as it approaches its next earnings report date. This is expected to be December 4, 2018. The company is expected to report EPS of $0.38, up 52% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $216.19 million, up 22.73% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.48 per share and revenue of $843.19 million. These totals would mark changes of +59.14% and +22.99%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for VEEV. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.26% higher. VEEV is currently a Zacks Rank #2 (Buy).

Digging into valuation, VEEV currently has a Forward P/E ratio of 61.72. Its industry sports an average Forward P/E of 61.72, so we one might conclude that VEEV is trading at a no noticeable deviation comparatively.

We can also see that VEEV currently has a PEG ratio of 3.2. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. VEEV's industry had an average PEG ratio of 3.2 as of yesterday's close.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 49, which puts it in the top 19% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.




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