Veeva Systems (VEEV) closed at $286.59 in the latest trading session, marking a -3.98% move from the prior day. The stock fell short of the S&P 500, which registered a loss of 2.71% for the day. Meanwhile, the Dow lost 1.9%, and the Nasdaq, a tech-heavy index, lost 3.56%.
Heading into today, shares of the provider of cloud-based software services for the life sciences industry had gained 6.8% over the past month, outpacing the Medical sector's gain of 2.6% and the S&P 500's gain of 3.5%.
The upcoming earnings release of Veeva Systems will be of great interest to investors. The company is expected to report EPS of $1.95, up 11.43% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $791.88 million, indicating a 13.25% increase compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $7.78 per share and revenue of $3.14 billion, indicating changes of +17.88% and +14.26%, respectively, compared to the previous year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Veeva Systems. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, 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 last 30 days, the Zacks Consensus EPS estimate has moved 0.42% higher. At present, Veeva Systems boasts a Zacks Rank of #3 (Hold).
From a valuation perspective, Veeva Systems is currently exchanging hands at a Forward P/E ratio of 38.37. This signifies a discount in comparison to the average Forward P/E of 41.88 for its industry.
We can also see that VEEV currently has a PEG ratio of 1.64. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Medical Info Systems industry had an average PEG ratio of 3.32 as trading concluded yesterday.
The Medical Info Systems industry is part of the Medical sector. This group has a Zacks Industry Rank of 148, putting it in the bottom 41% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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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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