Veeva Systems (VEEV) ended the recent trading session at $222.00, demonstrating a -1.46% change from the preceding day's closing price. The stock's change was less than the S&P 500's daily gain of 0.03%. Elsewhere, the Dow saw a downswing of 0.58%, while the tech-heavy Nasdaq appreciated by 0.28%.
Heading into today, shares of the provider of cloud-based software services for the life sciences industry had gained 0.95% over the past month, outpacing the Medical sector's loss of 0.01% and the S&P 500's gain of 0.6%.
Analysts and investors alike will be keeping a close eye on the performance of Veeva Systems in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $1.92, reflecting a 10.34% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $808.89 million, indicating a 12.21% increase compared to the same quarter of the previous year.
VEEV's full-year Zacks Consensus Estimates are calling for earnings of $7.93 per share and revenue of $3.16 billion. These results would represent year-over-year changes of +20.15% and +15.13%, respectively.
It is also important to note the recent changes to analyst estimates for Veeva Systems. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Veeva Systems is currently a Zacks Rank #3 (Hold).
In terms of valuation, Veeva Systems is currently trading at a Forward P/E ratio of 28.42. This valuation marks no noticeable deviation compared to its industry average Forward P/E of 28.42.
One should further note that VEEV currently holds a PEG ratio of 1.2. 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. The Medical Info Systems was holding an average PEG ratio of 2.36 at yesterday's closing price.
The Medical Info Systems industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 159, finds itself in the bottom 36% echelons 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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