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Veeva Systems (VEEV) Increases Yet Falls Behind Market: What Investors Need to Know
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Veeva Systems (VEEV - Free Report) closed the latest trading day at $189.91, indicating a +1.53% change from the previous session's end. The stock's change was less than the S&P 500's daily gain of 1.89%. At the same time, the Dow added 1.7%, and the tech-heavy Nasdaq gained 1.78%.
The provider of cloud-based software services for the life sciences industry's stock has dropped by 6.7% in the past month, falling short of the Computer and Technology sector's loss of 0.81% and the S&P 500's loss of 1.14%.
Market participants will be closely following the financial results of Veeva Systems in its upcoming release. On that day, Veeva Systems is projected to report earnings of $1.27 per share, which would represent year-over-year growth of 12.39%. Simultaneously, our latest consensus estimate expects the revenue to be $616.21 million, showing a 11.56% escalation compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.67 per share and revenue of $2.37 billion. These totals would mark changes of +9.11% and +9.89%, respectively, from last year.
Any recent changes to analyst estimates for Veeva Systems should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.04% higher. At present, Veeva Systems boasts a Zacks Rank of #3 (Hold).
With respect to valuation, Veeva Systems is currently being traded at a Forward P/E ratio of 40.05. This represents a premium compared to its industry's average Forward P/E of 34.16.
It is also worth noting that VEEV currently has a PEG ratio of 1.64. 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. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 1.49.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 54, which puts it in the top 22% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Veeva Systems (VEEV) Increases Yet Falls Behind Market: What Investors Need to Know
Veeva Systems (VEEV - Free Report) closed the latest trading day at $189.91, indicating a +1.53% change from the previous session's end. The stock's change was less than the S&P 500's daily gain of 1.89%. At the same time, the Dow added 1.7%, and the tech-heavy Nasdaq gained 1.78%.
The provider of cloud-based software services for the life sciences industry's stock has dropped by 6.7% in the past month, falling short of the Computer and Technology sector's loss of 0.81% and the S&P 500's loss of 1.14%.
Market participants will be closely following the financial results of Veeva Systems in its upcoming release. On that day, Veeva Systems is projected to report earnings of $1.27 per share, which would represent year-over-year growth of 12.39%. Simultaneously, our latest consensus estimate expects the revenue to be $616.21 million, showing a 11.56% escalation compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.67 per share and revenue of $2.37 billion. These totals would mark changes of +9.11% and +9.89%, respectively, from last year.
Any recent changes to analyst estimates for Veeva Systems should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.04% higher. At present, Veeva Systems boasts a Zacks Rank of #3 (Hold).
With respect to valuation, Veeva Systems is currently being traded at a Forward P/E ratio of 40.05. This represents a premium compared to its industry's average Forward P/E of 34.16.
It is also worth noting that VEEV currently has a PEG ratio of 1.64. 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. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 1.49.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 54, which puts it in the top 22% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.