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

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Veeva Systems (VEEV - Free Report) closed at $140.89 in the latest trading session, marking a +0.15% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.07%. Elsewhere, the Dow 0%, while the tech-heavy Nasdaq lost 0.29%.

Heading into today, shares of the provider of cloud-based software services for the life sciences industry had lost 3.93% over the past month, lagging the Computer and Technology sector's gain of 5.79% and the S&P 500's gain of 4.3% in that time.

Investors will be hoping for strength from VEEV as it approaches its next earnings release, which is expected to be November 26, 2019. In that report, analysts expect VEEV to post earnings of $0.54 per share. This would mark year-over-year growth of 20%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $275.35 million, up 22.52% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.12 per share and revenue of $1.07 billion, which would represent changes of +30.06% and +23.94%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for VEEV. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. 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 66.23. Its industry sports an average Forward P/E of 58.91, so we one might conclude that VEEV is trading at a premium comparatively.

We can also see that VEEV currently has a PEG ratio of 3.48. 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 2.85 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 79, which puts it in the top 31% 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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