Veeva Systems (VEEV) ended the recent trading session at $186.99, demonstrating a +1.29% change from the preceding day's closing price. This change outpaced the S&P 500's 0.33% loss on the day. Meanwhile, the Dow gained 0.1%, and the Nasdaq, a tech-heavy index, lost 0.59%.
Shares of the provider of cloud-based software services for the life sciences industry have depreciated by 20.84% over the course of the past month, underperforming the Medical sector's loss of 1.02%, and the S&P 500's loss of 0%.
The investment community will be closely monitoring the performance of Veeva Systems in its forthcoming earnings report. On that day, Veeva Systems is projected to report earnings of $1.92 per share, which would represent year-over-year growth of 10.34%. Simultaneously, our latest consensus estimate expects the revenue to be $808.89 million, showing a 12.21% escalation compared to the year-ago quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $7.93 per share and a revenue of $3.16 billion, representing changes of +20.15% and +15.16%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Veeva Systems. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.31% higher. Veeva Systems currently has a Zacks Rank of #3 (Hold).
From a valuation perspective, Veeva Systems is currently exchanging hands at a Forward P/E ratio of 21.75. For comparison, its industry has an average Forward P/E of 20.68, which means Veeva Systems is trading at a premium to the group.
Meanwhile, VEEV's PEG ratio is currently 0.92. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. VEEV's industry had an average PEG ratio of 1.31 as of yesterday's close.
The Medical Info Systems industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 159, which puts it in the bottom 36% 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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