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Veeva Systems (VEEV) Dips More Than Broader Markets: What You Should Know

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Veeva Systems (VEEV - Free Report) closed at $96.63 in the latest trading session, marking a -0.54% move from the prior day. This move lagged the S&P 500's daily loss of 0.25%. At the same time, the Dow added 0.04%, and the tech-heavy Nasdaq lost 0.53%.

Heading into today, shares of the provider of cloud-based software services for the life sciences industry had gained 8.68% over the past month, outpacing the Computer and Technology sector's loss of 3.92% and the S&P 500's loss of 2.35% in that time.

Wall Street will be looking for positivity from VEEV as it approaches its next earnings report date. This is expected to be November 28, 2018. On that day, VEEV is projected to report earnings of $0.38 per share, which would represent year-over-year growth of 52%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $216.19 million, up 22.73% from the year-ago period.

VEEV's full-year Zacks Consensus Estimates are calling for earnings of $1.48 per share and revenue of $843.19 million. These results would represent year-over-year changes of +59.14% and +22.99%, respectively.

Investors should also note any recent changes to analyst estimates for VEEV. 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 company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. The Zacks Consensus EPS estimate remained stagnant within the past month. VEEV is holding a Zacks Rank of #2 (Buy) right now.

In terms of valuation, VEEV is currently trading at a Forward P/E ratio of 65.64. This valuation marks a premium compared to its industry's average Forward P/E of 58.

We can also see that VEEV currently has a PEG ratio of 3.4. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Software industry currently had an average PEG ratio of 3.66 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 51, which puts it in the top 20% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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