In the latest market close, Veeva Systems (VEEV) reached $232.07, with a -0.69% movement compared to the previous day. The stock fell short of the S&P 500, which registered a gain of 0.63% for the day. Elsewhere, the Dow gained 0.21%, while the tech-heavy Nasdaq added 1.52%.
Heading into today, shares of the provider of cloud-based software services for the life sciences industry had gained 3.16% over the past month, outpacing the Medical sector's loss of 2.42% and the S&P 500's loss of 0.7% in that time.
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 $1.74, up 16% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $727.99 million, up 11.94% from the year-ago period.
VEEV's full-year Zacks Consensus Estimates are calling for earnings of $7.30 per share and revenue of $3.05 billion. These results would represent year-over-year changes of +10.61% and +10.99%, respectively.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Veeva Systems. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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, 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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.47% upward. Veeva Systems is holding a Zacks Rank of #2 (Buy) right now.
From a valuation perspective, Veeva Systems is currently exchanging hands at a Forward P/E ratio of 32.02. This valuation marks a premium compared to its industry's average Forward P/E of 24.82.
Also, we should mention that VEEV has a PEG ratio of 1.22. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Medical Info Systems industry currently had an average PEG ratio of 2.93 as of yesterday's close.
The Medical Info Systems industry is part of the Medical sector. This group has a Zacks Industry Rank of 43, putting it in the top 18% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming 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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