Veeva Systems (VEEV) closed the most recent trading day at $283.73, moving -3.07% from the previous trading session. The stock's performance was behind the S&P 500's daily gain of 0.53%. Meanwhile, the Dow gained 0.52%, and the Nasdaq, a tech-heavy index, added 0.52%.
Prior to today's trading, shares of the provider of cloud-based software services for the life sciences industry had gained 4.89% outpaced the Medical sector's gain of 2.87% and the S&P 500's gain of 0.71%.
The investment community will be paying close attention to the earnings performance of Veeva Systems in its upcoming release. The company is expected to report EPS of $1.95, up 11.43% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $791.88 million, up 13.25% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $7.78 per share and revenue of $3.14 billion, which would represent changes of +17.88% and +14.26%, respectively, from the prior year.
It is also important to note the recent changes 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 business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.17% higher. Veeva Systems presently features a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Veeva Systems has a Forward P/E ratio of 37.64 right now. This expresses a discount compared to the average Forward P/E of 40.49 of its industry.
It is also worth noting that VEEV currently has a PEG ratio of 1.6. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Medical Info Systems industry had an average PEG ratio of 3.33 as trading concluded yesterday.
The Medical Info Systems industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 94, positioning it in the top 39% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding 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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