Veeva Systems (VEEV - Free Report) closed at $109.06 in the latest trading session, marking a +0.62% move from the prior day. This change lagged the S&P 500's 0.86% gain on the day. At the same time, the Dow lost 0.06%, and the tech-heavy Nasdaq gained 1.37%.
Heading into today, shares of the provider of cloud-based software services for the life sciences industry had gained 23.89% over the past month, outpacing the Computer and Technology sector's gain of 6.94% and the S&P 500's gain of 8.11% in that time.
VEEV will be looking to display strength as it nears its next earnings release, which is expected to be February 26, 2019. On that day, VEEV is projected to report earnings of $0.38 per share, which would represent year-over-year growth of 65.22%. Meanwhile, our latest consensus estimate is calling for revenue of $227.54 million, up 23.05% from the prior-year quarter.
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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 #3 (Hold) right now.
Investors should also note VEEV's current valuation metrics, including its Forward P/E ratio of 68.6. Its industry sports an average Forward P/E of 53.52, so we one might conclude that VEEV is trading at a premium comparatively.
Investors should also note that VEEV has a PEG ratio of 3.53 right now. 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. VEEV's industry had an average PEG ratio of 2.66 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 25, which puts it in the top 10% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.