Veeva Systems (VEEV) closed at $251.95 in the latest trading session, marking a -0.82% move from the prior day. This change lagged the S&P 500’s daily loss of 0.62%. Elsewhere, the Dow lost 0.69%, while the tech-heavy Nasdaq lost 0.94%.
Coming into today, shares of the provider of cloud-based software services for the life sciences industry had gained 7.27% in the past month. In that same time, the Computer and Technology sector gained 2.56%, while the S&P 500 gained 3.51%.
VEEV will be looking to display strength as it nears its next earnings release. On that day, VEEV is projected to report earnings of $0.64 per share, which would represent year-over-year growth of 16.36%. Meanwhile, our latest consensus estimate is calling for revenue of $339.69 million, up 27.27% from the prior-year quarter.
VEEV’s full-year Zacks Consensus Estimates are calling for earnings of $2.55 per share and revenue of $1.39 billion. These results would represent year-over-year changes of +16.44% and +25.82%, respectively.
Investors might also notice 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. Within the past 30 days, our consensus EPS projection remained stagnant. 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 99.73. This represents a premium compared to its industry’s average Forward P/E of 73.73.
Investors should also note that VEEV has a PEG ratio of 5.84 right now. 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 4.01 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 102, putting it in the top 41% 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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