In the latest trading session, Veeva Systems (VEEV - Free Report) closed at $197.73, marking a -1.35% move from the previous day. This change lagged the S&P 500's daily gain of 3.15%. Meanwhile, the Dow gained 3.85%, and the Nasdaq, a tech-heavy index, added 2.44%.
Coming into today, shares of the provider of cloud-based software services for the life sciences industry had gained 15.04% in the past month. In that same time, the Computer and Technology sector gained 5.44%, while the S&P 500 gained 0.38%.
Wall Street will be looking for positivity from VEEV as it approaches its next earnings report date. This is expected to be May 28, 2020. In that report, analysts expect VEEV to post earnings of $0.59 per share. This would mark year-over-year growth of 18%. Our most recent consensus estimate is calling for quarterly revenue of $325.16 million, up 32.85% from the year-ago period.
VEEV's full-year Zacks Consensus Estimates are calling for earnings of $2.48 per share and revenue of $1.39 billion. These results would represent year-over-year changes of +13.24% and +25.56%, respectively.
Investors should also note any recent changes to analyst estimates for VEEV. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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. The Zacks Consensus EPS estimate remained stagnant within the past month. 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 80.68. Its industry sports an average Forward P/E of 50.84, 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 5.19. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Software was holding an average PEG ratio of 2.79 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 30, which puts it in the top 12% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.