Yahoo Finance Why Veeva Systems (VEEV) Outpaced the Stock Market Today
In the latest market close, Veeva Systems (VEEV) reached $201.58, with a +0.33% movement compared to the previous day. This move outpaced the S&P 500's daily gain of 0.32%. At the same time, the Dow added 0.38%, and the tech-heavy Nasdaq gained 0.35%.
Heading into today, shares of the provider of cloud-based software services for the life sciences industry had lost 13.29% over the past month, lagging the Computer and Technology sector's loss of 1.9% and the S&P 500's loss of 2% in that time.
Investors will be eagerly watching for the performance of Veeva Systems in its upcoming earnings disclosure. The company is predicted to post an EPS of $1.43, indicating a 57.14% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $641.73 million, indicating a 21.92% increase compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $6.14 per share and revenue of $2.73 billion. These totals would mark changes of +26.86% and +15.61%, respectively, from last year.
Any recent changes to analyst estimates for Veeva Systems should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Currently, Veeva Systems is carrying a Zacks Rank of #1 (Strong Buy).
Looking at valuation, Veeva Systems is presently trading at a Forward P/E ratio of 32.7. This expresses a premium compared to the average Forward P/E of 29.07 of its industry.
It's also important to note that VEEV currently trades at a PEG ratio of 1.36. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 1.73.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 65, putting it in the top 26% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Veeva Systems Inc. (VEEV) : Free Stock Analysis Report
