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Reasons to Add Veeva Systems (VEEV) to Your Portfolio Now

Veeva Systems Inc. VEEV is well-poised for growth in the coming quarters, courtesy of its strong product portfolio. The optimism, led by a solid third-quarter fiscal 2024 performance and strategic deals, is expected to contribute further. Stiff competition and data security threats persist.

Over the past six months, this currently Zacks Rank #2 (Buy) stock has risen 16.6% compared with 40.9% growth of the industry and a 13.2% 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 $35.32 billion. The company projects 24.6% growth for the next five years and expects to maintain its strong performance going forward. It delivered an average earnings surprise of 9.6% for the past four quarters.

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Zacks Investment Research


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Let’s delve deeper.

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.

On the third-quarter fiscal 2024 earnings call this month, Veeva Systems’ management confirmed that the company has made several important product strategy decisions in the last two quarters. VEEV announced the addition of Marketing Automation and Patient CRM to Commercial Cloud, and the expansion of Data Cloud to clinical.

Strategic Deals: We are upbeat about Veeva Systems’ inking of a slew of notable deals. This month, the company announced that Boehringer Ingelheim, a global animal health leader, has selected Veeva Vault Clinical and Veeva Vault RIM applications as the technology foundation for clinical and regulatory management of its health business unit.

In January, Veeva Systems announced that SK Life Science, Inc., a subsidiary of SK Biopharmaceuticals Co. Ltd., is using Veeva Vault Validation Management to streamline and accelerate its validation process.

Strong Q3 Results: Veeva Systems’ solid third-quarter fiscal 2024 results buoy optimism. The company saw an uptick in the overall top and bottom lines and robust performances by both segments during the quarter. It continued to benefit from its flagship Vault platform. Veeva Systems’ continued strength in its Commercial Solutions with new customer additions and strong win rates in Veeva CRM were also seen.

Downsides

Data Security Threats:Veeva Systems’ solutions involve the storage and transmission of its customers’ proprietary information and personal details of medical professionals, patients and clinical trial participants, and other sensitive information. Unauthorized access or other security breaches or incidents could damage the company’s reputation. VEEV may be unable to adequately anticipate security threats or implement adequate preventative measures. This is partially because the techniques used to obtain unauthorized access or sabotage systems change frequently and are becoming increasingly sophisticated and complex. They are also generally not identified until launched against a target.

Stiff Competition: Veeva Systems operates in a highly competitive market. In new sales cycles within the company’s largest product categories, it competes with other cloud-based solutions from providers that make applications for the life sciences industry. Veeva Systems’ Commercial Cloud and Veeva Vault application suites also compete to replace client-server-based legacy solutions offered by large companies and other smaller application providers.

Estimate Trend

VEEV is witnessing a positive estimate revision trend for fiscal 2025. In the past 60 days, the Zacks Consensus Estimate for its earnings has moved 0.4% north to $5.54 per share.

The Zacks Consensus Estimate for the company’s first-quarter fiscal 2025 revenues is pegged at $644.5 million, indicating a 22.5% improvement from the year-ago quarter’s reported number.

Veeva Systems Inc. Price

Veeva Systems Inc. Price
Veeva Systems Inc. Price

Veeva Systems Inc. price | Veeva Systems Inc. Quote

Other Key Picks

Some other top-ranked stocks in the broader medical space are Edward Lifesciences EW, Asensus Surgical ASXC and Integer Holdings Corporation ITGR.

Edward Lifesciences, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 7.2%. EW’s earnings surpassed estimates in two of the trailing four quarters and met the same twice, delivering an average surprise of 0.80%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Edward Lifesciences' shares have risen 12.8% in the past six months compared with the industry’s 9.6% growth.

Asensus Surgical, carrying a Zacks Rank of 2 at present, has an estimated growth rate of 40.6% for 2024. ASXC’s earnings surpassed estimates in one of the trailing four quarters, missed in two and met in the other, delivering an average negative surprise of 6.70%.

Asensus Surgical’s shares have risen 8.4% in the past six months compared with the industry’s 9.6% growth.

Integer Holdings, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 15%. ITGR’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 11.9%.

Integer Holdings’ shares have risen 17.7% in the past six months compared with the industry’s 9.6% growth.

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

Edwards Lifesciences Corporation (EW) : Free Stock Analysis Report

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

Integer Holdings Corporation (ITGR) : Free Stock Analysis Report

Asensus Surgical, Inc. (ASXC) : Free Stock Analysis Report

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Zacks Investment Research