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Veeva Systems (VEEV) Outpaces Stock Market Gains: What You Should Know

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The latest trading session saw Veeva Systems (VEEV - Free Report) ending at $187.92, denoting a +1.04% adjustment from its last day's close. The stock exceeded the S&P 500, which registered a gain of 0.55% for the day. Meanwhile, the Dow gained 0.62%, and the Nasdaq, a tech-heavy index, added 0.63%.

The provider of cloud-based software services for the life sciences industry's stock has climbed by 0.11% in the past month, falling short of the Computer and Technology sector's gain of 5.73% and the S&P 500's gain of 4.28%.

Investors will be eagerly watching for the performance of Veeva Systems in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $1.53, reflecting a 26.45% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $667.3 million, up 13.06% from the year-ago period.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $6.15 per share and revenue of $2.71 billion. These totals would mark changes of +27.07% and +14.47%, respectively, from last year.

Any recent changes to analyst estimates for Veeva Systems should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.48% increase. Veeva Systems is currently sporting a Zacks Rank of #3 (Hold).

Looking at valuation, Veeva Systems is presently trading at a Forward P/E ratio of 30.25. This indicates a premium in contrast to its industry's Forward P/E of 29.48.

Meanwhile, VEEV's PEG ratio is currently 1.24. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Internet - Software stocks are, on average, holding a PEG ratio of 1.75 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 89, which puts it in the top 36% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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