Veeva (VEEV) Moves 3.7% Higher: Will This Strength Last?

Veeva Systems (VEEV) shares rallied 3.7% in the last trading session to close at $217.04. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 9.6% loss over the past four weeks.

The upside can be attributed to relief-rally across global markets following the announcement of a 90-day pause on tariff hike by the United States.

This provider of cloud-based software services for the life sciences industry is expected to post quarterly earnings of $1.74 per share in its upcoming report, which represents a year-over-year change of +16%. Revenues are expected to be $727.99 million, up 11.9% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Veeva, the consensus EPS estimate for the quarter has been revised 1.4% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on VEEV going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Veeva is part of the Zacks Medical Info Systems industry. Pulmonx Corporation (LUNG), another stock in the same industry, closed the last trading session 5.1% lower at $5.43. LUNG has returned -21.6% in the past month.

Pulmonx's consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.37. Compared to the company's year-ago EPS, this represents a change of -2.8%. Pulmonx currently boasts a Zacks Rank of #3 (Hold).

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

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research