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

In the latest trading session, Veeva Systems (VEEV) closed at $314.81, marking a -0.69% move from the previous day. This move lagged the S&P 500's daily gain of 0.18%.

- Zacks

Prior to today's trading, shares of the provider of cloud-based software services for the life sciences industry had gained 10.35% over the past month. This has outpaced the Computer and Technology sector's gain of 5.57% and the S&P 500's gain of 5.68% in that time.

VEEV will be looking to display strength as it nears its next earnings release. In that report, analysts expect VEEV to post earnings of $0.88 per share. This would mark year-over-year growth of 12.82%. Our most recent consensus estimate is calling for quarterly revenue of $465.31 million, up 23.25% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.57 per share and revenue of $1.83 billion, which would represent changes of +21.43% and +25.19%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for VEEV. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 0.07% higher. VEEV currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that VEEV has a Forward P/E ratio of 88.71 right now. This represents a premium compared to its industry's average Forward P/E of 78.51.

Investors should also note that VEEV has a PEG ratio of 4.87 right now. 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. The Internet - Software industry currently had an average PEG ratio of 4.39 as of yesterday's close.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 169, which puts it in the bottom 34% 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.

Infrastructure Stock Boom to Sweep America

A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.

The only question is “Will you get into the right stocks early when their growth potential is greatest?”

Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

 

Veeva Systems Inc. (VEEV): Free Stock Analysis Report

 

To read this article on Zacks.com click here.

 

Zacks Investment Research