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Here's Why You Should Invest in Veeva Systems (VEEV) Now

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Veeva Systems Inc. (VEEV - Free Report) has put up a solid fiscal third-quarter show and also has a string of developments to its advantage. The company’s focus on cloud-based software like Veeva Vault also lends it a competitive edge.

Price Performance

In a year’s time, shares of this Zacks Rank #1 (Strong Buy) company have skyrocketed 72.2% compared with the industry’s 5.7% rise and the S&P 500 index’s 2.7% gain.

Let us take a quick look at the factors that make Veeva Systems a solid pick for now.

What Makes Veeva Systems an Attractive Pick?

Solid Q3 Results

Veeva Systems exited third-quarter fiscal 2019 on a solid note.

The company posted earnings per share of 45 cents which surpassed the Zacks Consensus Estimate of 38 cents. Adjusted earnings increased a whopping 80% on a year-over-year basis.

Total revenues came in at $224.7 million, outpacing the Zacks Consensus Estimate of $216.23 million. On a year-over-year basis, the top line improved 27%.

Notably, Veeva Systems raised its fiscal 2019 guidance. Revenues are expected between $855.8 million and $856.8 million, up from the previously anticipated range of $840-$843 million. Additionally, adjusted earnings per share are anticipated at $1.58, up from the previous guidance of $1.47-$1.48.

Slew of Developments

Veeva Systems has been witnessing a slew of developments of late.

Recently, Veeva Vault PromoMats was adopted by Roche, a research-based healthcare company.

Earlier this month, Veeva Systems introduced Veeva Vault Digital Publishing, a digital asset management (DAM) capability in its Vault PromoMats and Vault MedComms platforms. Notably, this will enable healthcare companies to have greater agility in publishing regulated content across digital channels.

Last month, global pharmaceutical and dermo-cosmetics company Pierre Fabre adopted Veeva OpenData for accurate customer data to strengthen healthcare professional (HCP) engagement.

Moreover, Laboratoires FILL-MED, a Filorga Group company, and Novacap recently adopted Veeva QualityOne to modernize quality management.

Veeva Systems Inc. Price and Consensus

 

Veeva Systems Inc. Price and Consensus | Veeva Systems Inc. Quote

Which Way Are Estimates Headed?

For the fourth quarter of fiscal 2019, the Zacks Consensus Estimate is pegged at 40 cents, reflecting year-over-year growth of 73.9%. The same for revenues stands at $227.2 million, mirroring an 22.9% improvement year over year.

For fiscal 2019, the Zacks Consensus Estimate for earnings is pinned at $1.58, mirroring a 69.9% rise from a year ago. For revenues, the same is pegged at $857 million, indicating a 25% rise.

Bottom Line

Veeva Systems has a Momentum Score of A. This reflects possibilities of outperformance at the moment. Our research shows that stocks with a Momentum Score of A or B, when combined with a Zacks Rank #1 or 2 (Buy) are better picks than most.

Other Key Picks

Other top-ranked stocks in the broader medical space are Integer Holdings Corporation (ITGR - Free Report) , OPKO Health, Inc. (OPK - Free Report) and Surmodics (SRDX - Free Report) .

Integer Holdings has an earnings growth rate of 31.2% for the next quarter and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

OPKO Health’s long-term earnings growth rate is projected at 12%. The stock carries a Zacks Rank of 2.

Surmodics’ long-term earnings growth rate is estimated at 10%. The stock carries a Zacks Rank #2.

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