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Veeva Systems (VEEV) Rises As Market Takes a Dip: Key Facts

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The most recent trading session ended with Veeva Systems (VEEV - Free Report) standing at $216.11, reflecting a +0.06% shift from the previouse trading day's closing. The stock exceeded the S&P 500, which registered a loss of 0.5% for the day. Meanwhile, the Dow experienced a rise of 0.12%, and the technology-dominated Nasdaq saw a decrease of 1.23%.

The provider of cloud-based software services for the life sciences industry's shares have seen an increase of 2.28% over the last month, surpassing the Computer and Technology sector's loss of 0.1% and the S&P 500's loss of 2.4%.

Investors will be eagerly watching for the performance of Veeva Systems in its upcoming earnings disclosure. The company is predicted to post an EPS of $1.26, indicating a 11.5% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $616.12 million, up 11.54% from the year-ago period.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.67 per share and revenue of $2.37 billion, indicating changes of +9.11% and +9.87%, respectively, compared to the previous year.

Investors should also take note of any recent adjustments to analyst estimates for Veeva Systems. 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 reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.18% higher. At present, Veeva Systems boasts a Zacks Rank of #3 (Hold).

In terms of valuation, Veeva Systems is currently trading at a Forward P/E ratio of 46.26. This signifies a premium in comparison to the average Forward P/E of 37.05 for its industry.

It is also worth noting that VEEV currently has a PEG ratio of 1.89. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Internet - Software stocks are, on average, holding a PEG ratio of 1.49 based on yesterday's closing prices.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 78, which puts it in the top 31% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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