Veeva Systems (VEEV Quick QuoteVEEV – Free Report) closed the latest trading day at $189.52, indicating a -0.33% change from the previous session’s end. The stock exceeded the S&P 500, which registered a loss of 0.48% for the day. On the other hand, the Dow registered a loss of 1.12%, and the technology-centric Nasdaq increased by 0.38%.
Coming into today, shares of the provider of cloud-based software services for the life sciences industry had lost 6.26% in the past month. In that same time, the Computer and Technology sector lost 3.16%, while the S&P 500 lost 2.65%.
The investment community will be closely monitoring the performance of Veeva Systems in its forthcoming earnings report. The company’s earnings per share (EPS) are projected to be $1.26, reflecting a 11.5% increase from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $616.21 million, indicating a 11.56% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $4.68 per share and a revenue of $2.37 billion, demonstrating changes of +9.35% and +9.89%, respectively, from the preceding 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 suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.16% higher. At present, Veeva Systems boasts a Zacks Rank of #3 (Hold).
In the context of valuation, Veeva Systems is at present trading with a Forward P/E ratio of 40.65. This expresses a premium compared to the average Forward P/E of 33.96 of its industry.
We can also see that VEEV currently has a PEG ratio of 1.66. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. The average PEG ratio for the Internet – Software industry stood at 1.39 at the close of the market yesterday.
The Internet – Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 62, which puts it in the top 25% 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.