Back to top

Image: Bigstock

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

Read MoreHide Full Article

Veeva Systems (VEEV - Free Report) closed the most recent trading day at $147.21, moving +1.02% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.33%. At the same time, the Dow added 0.43%, and the tech-heavy Nasdaq gained 0.33%.

Heading into today, shares of the provider of cloud-based software services for the life sciences industry had lost 5.98% over the past month, lagging the Computer and Technology sector's gain of 3.65% and the S&P 500's gain of 2.66% in that time.

VEEV will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.54, up 20% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $275.35 million, up 22.52% from the year-ago period.

VEEV's full-year Zacks Consensus Estimates are calling for earnings of $2.12 per share and revenue of $1.07 billion. These results would represent year-over-year changes of +30.06% and +23.94%, respectively.

It is also important to note the recent changes to analyst estimates for VEEV. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. VEEV currently has a Zacks Rank of #2 (Buy).

Digging into valuation, VEEV currently has a Forward P/E ratio of 68.61. For comparison, its industry has an average Forward P/E of 55.24, which means VEEV is trading at a premium to the group.

It is also worth noting that VEEV currently has a PEG ratio of 3.6. 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. Internet - Software stocks are, on average, holding a PEG ratio of 2.85 based on yesterday's closing prices.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 52, which puts it in the top 21% 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.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Veeva Systems Inc. (VEEV) - free report >>

Published in