Veeva Systems (VEEV) closed at $299.59 in the latest trading session, marking a +0.81% move from the prior day. The stock outpaced the S&P 500’s daily loss of 0.03%. Meanwhile, the Dow lost 0.24%, and the Nasdaq, a tech-heavy index, added 0.04%.
Coming into today, shares of the provider of cloud-based software services for the life sciences industry had gained 2.21% in the past month. In that same time, the Computer and Technology sector gained 6.07%, while the S&P 500 gained 3.1%.
VEEV will be looking to display strength as it nears its next earnings release. On that day, VEEV is projected to report earnings of $0.68 per share, which would represent year-over-year growth of 13.33%. Meanwhile, our latest consensus estimate is calling for revenue of $361.46 million, up 28.67% from the prior-year quarter.
VEEV’s full-year Zacks Consensus Estimates are calling for earnings of $2.68 per share and revenue of $1.42 billion. These results would represent year-over-year changes of +22.37% and +28.61%, respectively.
Any recent changes to analyst estimates for VEEV should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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.
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 currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that VEEV has a Forward P/E ratio of 110.88 right now. Its industry sports an average Forward P/E of 88.89, so we one might conclude that VEEV is trading at a premium comparatively.
Meanwhile, VEEV’s PEG ratio is currently 7.26. 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 6.65 based on yesterday’s closing prices.
The Internet – Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 186, putting it in the bottom 27% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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