Veeva Systems (VEEV) closed the most recent trading day at $292.22, moving -0.1% from the previous trading session. This change was narrower than the S&P 500’s daily loss of 0.15%. Meanwhile, the Dow lost 0.07%, and the Nasdaq, a tech-heavy index, lost 0.07%.
Investors will be hoping for strength from VEEV as it approaches its next earnings release. The company is expected to report EPS of $0.68, up 25.93% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $379.88 million, up 21.95% from the year-ago period.
VEEV’s full-year Zacks Consensus Estimates are calling for earnings of $2.84 per share and revenue of $1.45 billion. These results would represent year-over-year changes of +29.68% and +31.16%, respectively.
Any recent changes to analyst estimates for VEEV should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Within the past 30 days, our consensus EPS projection has moved 0.02% higher. VEEV currently has a Zacks Rank of #3 (Hold).
In terms of valuation, VEEV is currently trading at a Forward P/E ratio of 101.53. Its industry sports an average Forward P/E of 87.77, so we one might conclude that VEEV is trading at a premium comparatively.
Also, we should mention that VEEV has a PEG ratio of 6.59. 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 4.51 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 186, which puts it in the bottom 28% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
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