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Veeva Systems (VEEV) Dips More Than Broader Markets: What You Should Know

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Veeva Systems (VEEV - Free Report) closed the most recent trading day at $147.78, moving -0.59% from the previous trading session. This move lagged the S&P 500's daily loss of 0.15%. At the same time, the Dow added 0.11%, and the tech-heavy Nasdaq lost 0.24%.

Coming into today, shares of the provider of cloud-based software services for the life sciences industry had gained 0.67% in the past month. In that same time, the Computer and Technology sector gained 7.03%, while the S&P 500 gained 3.88%.

Investors will be hoping for strength from VEEV as it approaches its next earnings release. In that report, analysts expect VEEV to post earnings of $0.52 per share. This would mark year-over-year growth of 15.56%. Our most recent consensus estimate is calling for quarterly revenue of $297.70 million, up 28.14% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.17 per share and revenue of $1.09 billion, which would represent changes of +33.13% and +26.46%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for VEEV. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. VEEV is currently a Zacks Rank #2 (Buy).

Digging into valuation, VEEV currently has a Forward P/E ratio of 68.51. This valuation marks a premium compared to its industry's average Forward P/E of 57.54.

Investors should also note that VEEV has a PEG ratio of 3.13 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Software was holding an average PEG ratio of 2.54 at yesterday's closing price.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 109, which puts it in the top 43% 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.

To follow VEEV in the coming trading sessions, be sure to utilize Zacks.com.


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