Veeva Systems (VEEV) ended the recent trading session at $222.21, demonstrating a +1.49% change from the preceding day's closing price. This change outpaced the S&P 500's 0.06% loss on the day. Elsewhere, the Dow saw a downswing of 0.17%, while the tech-heavy Nasdaq depreciated by 0.06%.
Heading into today, shares of the provider of cloud-based software services for the life sciences industry had gained 0.39% over the past month, outpacing the Medical sector's loss of 0.79% and lagging the S&P 500's gain of 1.99%.
Investors will be eagerly watching for the performance of Veeva Systems in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.92, marking a 10.34% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $808.89 million, up 12.21% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $7.93 per share and revenue of $3.16 billion, indicating changes of +20.15% and +15.13%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Veeva Systems. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 past month, there's been no change in the Zacks Consensus EPS estimate. Veeva Systems currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Veeva Systems has a Forward P/E ratio of 27.62 right now. This signifies no noticeable deviation in comparison to the average Forward P/E of 27.62 for its industry.
It's also important to note that VEEV currently trades at a PEG ratio of 1.16. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As of the close of trade yesterday, the Medical Info Systems industry held an average PEG ratio of 2.35.
The Medical Info Systems industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 164, positioning it in the bottom 34% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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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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