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

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Veeva Systems (VEEV - Free Report) closed the most recent trading day at $118, moving -1.99% from the previous trading session. This move lagged the S&P 500's daily gain of 0.18%. Elsewhere, the Dow gained 0.24%, while the tech-heavy Nasdaq added 0.03%.

Coming into today, shares of the provider of cloud-based software services for the life sciences industry had gained 16.77% in the past month. In that same time, the Computer and Technology sector gained 5.62%, while the S&P 500 gained 4.28%.

Wall Street will be looking for positivity from VEEV as it approaches its next earnings report date. This is expected to be February 26, 2019. On that day, VEEV is projected to report earnings of $0.40 per share, which would represent year-over-year growth of 73.91%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $227.54 million, up 23.05% from the year-ago period.

Any recent changes to analyst estimates for VEEV should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. VEEV is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, VEEV is currently trading at a Forward P/E ratio of 67.29. This represents a premium compared to its industry's average Forward P/E of 54.28.

Meanwhile, VEEV's PEG ratio is currently 3.46. 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 was holding an average PEG ratio of 2.86 at yesterday's closing price.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 25, putting it in the top 10% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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.


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