In the latest close session, Veeva Systems (VEEV) was up +1.83% at $291.25. The stock's change was more than the S&P 500's daily gain of 0.07%. Meanwhile, the Dow experienced a drop of 0.7%, and the technology-dominated Nasdaq saw an increase of 0.18%.
Heading into today, shares of the provider of cloud-based software services for the life sciences industry had gained 2.33% over the past month, lagging the Medical sector's gain of 2.39% and the S&P 500's gain of 5.71%.
The upcoming earnings release of Veeva Systems will be of great interest to investors. The company's upcoming EPS is projected at $1.9, signifying a 17.28% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $767.61 million, indicating a 13.52% increase compared to the same quarter of the previous year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $7.64 per share and a revenue of $3.1 billion, signifying shifts of +15.76% and +12.78%, respectively, from the last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Veeva Systems. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Veeva Systems is currently a Zacks Rank #2 (Buy).
Looking at its valuation, Veeva Systems is holding a Forward P/E ratio of 37.42. This denotes a premium relative to the industry average Forward P/E of 31.
Also, we should mention that VEEV has a PEG ratio of 1.61. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Medical Info Systems industry held an average PEG ratio of 3.25.
The Medical Info Systems industry is part of the Medical sector. With its current Zacks Industry Rank of 73, this industry ranks in the top 30% of all industries, numbering over 250.
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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Veeva Systems Inc. (VEEV): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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