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Reasons to Retain Veeva Systems (VEEV) in Your Portfolio Now
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Veeva Systems Inc. (VEEV - Free Report) is well-poised for growth in the coming quarters, courtesy of its strong product portfolio. The optimism led by a solid first-quarter fiscal 2025 performance and strategic deals are expected to contribute further. Stiff competition and data security threats persist.
Over the past year, this Zacks Rank #3 (Hold) stock has lost 9.2% against 20.8% growth of the industry and a 25.1% rise of the S&P 500 Composite.
The renowned provider of cloud-based software applications and data solutions for the life sciences industry has a market capitalization of $30.38 billion. The company projects 24.3% growth for the next five years and expects to maintain its strong performance. It delivered an earnings surprise of 5.9% in the past four quarters, on average.
Image Source: Zacks Investment Research
Let’s delve deeper.
Strong Q1 Results: Veeva Systems’ solid first-quarter fiscal 2025 results buoy optimism. The company saw an uptick in the overall top and bottom lines and robust performances by both segments during the quarter. In Veeva Vault Quality, VEEV added 15 Vault QualityDocs customers, including a large, multinational contract development and manufacturing organization, as they modernize operations and continue to scale.
Strong Product Portfolio: We are optimistic about Veeva Systems’ unique solutions, which include Veeva Vault, Veeva CRM (customer relationship management), Veeva Network and Veeva OpenData.
In the first quarter of fiscal 2025, Veeva Systems’ management provided updates regarding its several products. Per management, Veeva Systems Development Cloud applications have been selected by three top 20 biopharmas. In the commercial area, management is making progress on the Commercial Cloud Vision with Vault CRM, which is fully available for all new customers. Veeva Systems also announced planned availability dates for new applications in the Vault CRM Suite, with Service Center coming in August and Campaign Manager in December.
In May, the company announced the availability of Veeva Vault Basics, a new offering that includes technology, training and support designed for biotechs.
Strategic Deals: We are upbeat about Veeva Systems’ inking of a slew of notable deals. In June, Veeva Systems announced a partnership with Vita Global Sciences, which is likely to help the latter improve its clinical data management processes as well as collaboration with key trial stakeholders. The latest adoption of Veeva Vault electronic data capture (EDC), part of the Veeva Clinical Platform, is likely to provide a boost to the Veeva Development Cloud business.
In the same month, the company announced that Hangzhou Tigermed Consulting Co., Ltd. had selected Veeva Vault EDC as its technology foundation for modern EDC.
In February, Veeva Systems announced that Boehringer Ingelheim had selected Veeva Vault Clinical and Veeva Vault RIM applications as its technology foundation for clinical and regulatory management in its animal health business unit.
Downsides
Data Security Threats: Veeva Systems provides solutions for the storage and transmission of sensitive data, including patient and clinical trial participant personal information, as well as proprietary information belonging to its customers. The company's reputation could be harmed by unauthorized access or other security incidents. However, the methods used to gain unauthorized access or sabotage systems are evolving, becoming more sophisticated, and complex. The company might not be able to predict security threats or implement adequate preventative measures.
Rising Costs: Veeva Systems has been experiencing rising operating costs over the past few months. Sales and marketing expenses for the first quarter of fiscal 2025 increased 9.9%. Management expects sales and marketing expenses to increase in fiscal 2025, primarily due to employee-related expenses as the company raises its headcount to support its sales and marketing efforts associated with its product offerings and continued expansion of its sales capacity across all its solutions. In the fiscal first quarter, the total operating expenses increased 7.8% year over year.
Estimate Trend
Veeva Systems is witnessing a stable estimate revision trend for fiscal 2025. In the past 30 days, the Zacks Consensus Estimate for its earnings has remained stable at $6.15 per share.
The Zacks Consensus Estimate for the company’s second-quarter fiscal 2025 revenues is pegged at $667.3 million, indicating a 13.1% improvement from the year-ago quarter’s reported number.
Key Picks
Some better-ranked stocks in the broader medical space that have announced quarterly results are DaVita (DVA - Free Report) , Stryker Corporation (SYK - Free Report) and Universal Health Services (UHS - Free Report) .
DaVita, carrying a Zacks Rank of 2 (Buy) at present, has an estimated long-term growth rate of 13.6%. DVA’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 29.4%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
DaVita’s shares have gained 44% compared with the industry’s 20.4% growth in the past year.
Stryker, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 10.6%. SYK’s earnings surpassed estimates in each of the trailing four quarters, with the average being 4.9%.
Stryker has gained 13.2% against the industry’s 3.1% decline in the past year.
Universal Health Services has an Earnings ESP of +2.91% and a Zacks Rank of 2, at present. UHS has an estimated earnings growth rate of 30.5% for 2024.
UHS’ earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 8.12%.
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Reasons to Retain Veeva Systems (VEEV) in Your Portfolio Now
Veeva Systems Inc. (VEEV - Free Report) is well-poised for growth in the coming quarters, courtesy of its strong product portfolio. The optimism led by a solid first-quarter fiscal 2025 performance and strategic deals are expected to contribute further. Stiff competition and data security threats persist.
Over the past year, this Zacks Rank #3 (Hold) stock has lost 9.2% against 20.8% growth of the industry and a 25.1% rise of the S&P 500 Composite.
The renowned provider of cloud-based software applications and data solutions for the life sciences industry has a market capitalization of $30.38 billion. The company projects 24.3% growth for the next five years and expects to maintain its strong performance. It delivered an earnings surprise of 5.9% in the past four quarters, on average.
Image Source: Zacks Investment Research
Let’s delve deeper.
Strong Q1 Results: Veeva Systems’ solid first-quarter fiscal 2025 results buoy optimism. The company saw an uptick in the overall top and bottom lines and robust performances by both segments during the quarter. In Veeva Vault Quality, VEEV added 15 Vault QualityDocs customers, including a large, multinational contract development and manufacturing organization, as they modernize operations and continue to scale.
Strong Product Portfolio: We are optimistic about Veeva Systems’ unique solutions, which include Veeva Vault, Veeva CRM (customer relationship management), Veeva Network and Veeva OpenData.
In the first quarter of fiscal 2025, Veeva Systems’ management provided updates regarding its several products. Per management, Veeva Systems Development Cloud applications have been selected by three top 20 biopharmas. In the commercial area, management is making progress on the Commercial Cloud Vision with Vault CRM, which is fully available for all new customers. Veeva Systems also announced planned availability dates for new applications in the Vault CRM Suite, with Service Center coming in August and Campaign Manager in December.
In May, the company announced the availability of Veeva Vault Basics, a new offering that includes technology, training and support designed for biotechs.
Strategic Deals: We are upbeat about Veeva Systems’ inking of a slew of notable deals. In June, Veeva Systems announced a partnership with Vita Global Sciences, which is likely to help the latter improve its clinical data management processes as well as collaboration with key trial stakeholders. The latest adoption of Veeva Vault electronic data capture (EDC), part of the Veeva Clinical Platform, is likely to provide a boost to the Veeva Development Cloud business.
In the same month, the company announced that Hangzhou Tigermed Consulting Co., Ltd. had selected Veeva Vault EDC as its technology foundation for modern EDC.
In February, Veeva Systems announced that Boehringer Ingelheim had selected Veeva Vault Clinical and Veeva Vault RIM applications as its technology foundation for clinical and regulatory management in its animal health business unit.
Downsides
Data Security Threats: Veeva Systems provides solutions for the storage and transmission of sensitive data, including patient and clinical trial participant personal information, as well as proprietary information belonging to its customers. The company's reputation could be harmed by unauthorized access or other security incidents. However, the methods used to gain unauthorized access or sabotage systems are evolving, becoming more sophisticated, and complex. The company might not be able to predict security threats or implement adequate preventative measures.
Rising Costs: Veeva Systems has been experiencing rising operating costs over the past few months. Sales and marketing expenses for the first quarter of fiscal 2025 increased 9.9%. Management expects sales and marketing expenses to increase in fiscal 2025, primarily due to employee-related expenses as the company raises its headcount to support its sales and marketing efforts associated with its product offerings and continued expansion of its sales capacity across all its solutions. In the fiscal first quarter, the total operating expenses increased 7.8% year over year.
Estimate Trend
Veeva Systems is witnessing a stable estimate revision trend for fiscal 2025. In the past 30 days, the Zacks Consensus Estimate for its earnings has remained stable at $6.15 per share.
The Zacks Consensus Estimate for the company’s second-quarter fiscal 2025 revenues is pegged at $667.3 million, indicating a 13.1% improvement from the year-ago quarter’s reported number.
Key Picks
Some better-ranked stocks in the broader medical space that have announced quarterly results are DaVita (DVA - Free Report) , Stryker Corporation (SYK - Free Report) and Universal Health Services (UHS - Free Report) .
DaVita, carrying a Zacks Rank of 2 (Buy) at present, has an estimated long-term growth rate of 13.6%. DVA’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 29.4%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
DaVita’s shares have gained 44% compared with the industry’s 20.4% growth in the past year.
Stryker, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 10.6%. SYK’s earnings surpassed estimates in each of the trailing four quarters, with the average being 4.9%.
Stryker has gained 13.2% against the industry’s 3.1% decline in the past year.
Universal Health Services has an Earnings ESP of +2.91% and a Zacks Rank of 2, at present. UHS has an estimated earnings growth rate of 30.5% for 2024.
UHS’ earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 8.12%.