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Chicago, IL – June 17, 2025 – Zacks Equity Research shares Veeva Systems VEEV as the Bull of the Day and PulteGroup, Inc.'s PHM as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Pony AI PONY, Toyota Motor TM and Uber Technologies UBER.
Here is a synopsis of all five stocks:
Veeva Systems is a cloud-based software firm focused on the pharmaceutical and life sciences industries.
VEEV stock has tripled the Zacks Tech sector over the past decade. Yet investors can buy the tech stock down 15% below its 2021 highs.
The life sciences tech company soared at the end of May after it posted impressive beat-and-raise results that highlight its margins and earnings expansion, and its artificial intelligence innovations.
The AI-boosted software stock is on the verge of breaking above a key technical trading range as it attempts to return to its records and beyond. Plus, Veeva's valuation levels are growing more enticing as it successfully expands its bottom line.
Veeva is a cloud-based software company focused on the pharmaceutical and life sciences industries, boasting clients like Merck, Bayer, and beyond.
VEEV helps clients improve and streamline critical business functions, with software and services for research and development, regulatory processes and compliance, safety, clinical trials, marketing, and more. Veeva's technology enables its clients to bring "products to market faster and more efficiently" while maintaining compliance.
The firm has invested heavily in artificial intelligence, and it announced Veeva AI at the end of April. Its new AI system "provides a fast and efficient way to introduce application-specific AI Agents based on large language models (LLMs) into existing Veeva applications and enable end users with AI Shortcuts."
The company averaged roughly 25% revenue growth over the last decade. Veeva grew its fiscal 2025 (last year) revenue by 16%, driven by a 20% increase in subscription services, helping boost its adjusted earnings by 37%. Most recently, VEEV posted beat-and-raise first quarter fiscal 2026 results on May 28.
VEEV grew its revenue by 17%, with Subscription Services up 19% YoY. The company also boosted its adjusted earnings by 31% and provided upbeat guidance.
Veeva said it is "progressing well toward" its goal of doubling its FY25 revenue by fiscal 2030, which would see it reach a $6 billion revenue run rate.
Looking beyond what CEO Peter Gassner called its "best first quarter ever," it is projected to boost its sales by roughly 12% in FY26 (this year) and next year to reach $3.46 billion.
The life sciences software giant is projected to grow its adjusted earnings by 15% this year and 9% next year. VEEV has topped our bottom line estimate for five years running, and upbeat earnings revisions land it a Zacks Rank #1 (Strong Buy).
Veeva stock has skyrocketed 955% in the last 10 years to more than triple the Zacks Tech sector. Despite this outperformance, it still trades 15% below its highs after chopping around the last several years, as Wall Street worries about slowing growth and valuation.
VEEV has jumped 35% in 2025, boosted by an 18% surge since its Q1 release at the end of May. The recent jump helped its very long-term 50-week moving average climb above its 200-week trendline, completing what technical traders call a bullish golden cross.
Veeva's valuation was a big reason for its underwhelming performance over the past several years.
It trades at 49.6X forward 12-month earnings vs. Tech's 26X. Yet, Veeva's current levels represent 35% value compared to its 10-year median and 67% below to its highs.
Its strong bottom-line growth outlook has it trading at an 80% discount to its highs and roughly 50% below its median, with a 2.1 price/earnings to growth (PEG) ratio.
This is not too far above its lows and the Tech sector's 1.7 even though Veeva stock has soared almost 1,00% in the last 10 years vs. Tech's 315%.
Investors should consider buying Veeva ahead of a potential breakout to all-time highs and for long-term AI-boosted growth within a critical area of the economy that's never going out of style.
On top of that, Veeva's balance sheet is stellar, with $6.1 billion in cash and equivalents, zero debt vs. just $1.5 billion in total liabilities. This backdrop gives the medical software company the ability to constantly pursue more organic growth opportunities across AI and beyond and make strategic acquisitions.
Homebuilding powerhouse PulteGroup, Inc.'s earnings outlook has faded significantly in 2025 amid a tough operating environment for PHM and many of its peers.
PulteGroup is one of the largest homebuilding companies in the U.S., operating in 24 states and over 45 major markets. It has delivered over 800,000 homes through its portfolio of brands, including Centex, Pulte Homes, Del Webb, DiVosta, John Wieland Homes and Neighborhoods, and American West.
These brands cater to diverse buyer segments, with 35% of PulteGroup's homes sold to first-time buyers, 39% to move-up buyers, and 26% to active-adult buyers. It is also worth highlighting that Del Webb and DiVosta are some of the most important players in the over-55 retirement market.
PulteGroup builds homes in popular areas from California and Texas to the Midwest, Florida, and beyond. The list of major markets includes Dallas, Austin, San Diego, Chicago, Miami, and many others. PHM's diversified set of customers helps it grow and gain exposure to different buying trends.
PulteGroup posted stellar sales growth over the past decade, including a post-COVID boom. The company is facing slowing growth prospects as it comes up against a difficult to compete against stretch and housing industry challenges outside of its control, such as high interest rates and soaring home prices after a historic home buying and moving frenzy.
PHM provided downbeat guidance when it reported its Q1 results in late April. "Consumers remain caught between a strong desire for homeownership and the affordability challenges of high selling prices and monthly payments that are stretched," CEO Ryan Marshall said in prepared remarks.
"Given the structural shortage of housing, we remain constructive on long-term housing demand, and are adapting to the short-term impacts on consumer demand resulting from greater economic and financial uncertainty."
PHM is projected to see its adjusted earnings slide 22% YoY in 2025 on 4% lower sales. Its downbeat EPS revisions earn the stock a Zacks Rank #5 (Strong Sell). Digging into its earnings revisions, the homebuilding giant's 2026 consensus earnings estimate is down 10% since its first quarter report.
PulteGroup stock has tanked roughly 30% from its 2024 highs. PHM is holding its ground at its 50-day moving average, and some long-term investors might want to put the homebuilder on their radars. But it is likely best to stay away from PulteGroup in the short run to make sure the housing market doesn't get even worse.
Pony AI, an autonomous-driving company based in Guangzhou, China, is accelerating its robotaxi ambitions. The company, which had around 250 robotaxis in its fleet late last year, aims to have in excess of 1,000 by the 2025-end. Management stated on the first quarter of 2025 conference call that the large-scale deployment will ramp up gradually throughout the second half of the year. PONY is working closely with its partners to ensure a quick ramp-up.
To this end, PONY recently entered into a partnership with Xihu Group, Shenzhen's leading taxi operator. Through this association, the company plans to deploy more than 1,000 Gen 7 robotaxis throughout the city. This move represents one of PONY's boldest fleet scale-up efforts to date and signals its growing operational focus on tier-one urban centers in China.
Crucially, the partnership adopts an asset-light and AI-empowered strategy. While Xihu Group handles vehicle operations and compliance, PONY concentrates on AI innovation and dispatch capabilities. As the first company approved for fully paid driverless services in Shenzhen's city centers, PONY is uniquely positioned to push robotaxi adoption into the mainstream. With urban mobility demand rising, this 1,000+ vehicle push marks a defining step toward the large-scale commercialization of autonomous transportation.
Pony AI and the Japan-based Toyota Motor have a joint venture to mass-produce fully driverless robotaxis in China. The joint venture leverages GAC Toyota's production capabilities to mass-produce the autonomous vehicles. GAC Toyota refers to the joint venture between Toyota Motor Company and GAC Group (Guangzhou Automobile Group) to manufacture and sell Toyota vehicles in China.
In May, PONY partnered with Uber Technologies to deploy its robotaxis onto the Uber platform. The partnership is expected to first launch in a key market in the Middle East later this year, with scope for further expansion. During the initial pilot phase, the robotaxis will have a safety operator onboard. PONY's technology is a suitable choice for Uber's global platform as it is scalable and cost-effective.
Shares of PONY have plunged 17.9% year to date, underperforming the Zacks Transportation-Equipment and Leasing industry's 1.8% increase in the same time frame.
The Zacks Consensus Estimate for PONY's 2025 and 2026 losses has remained stable over the past seven days.
PONY currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
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This article originally published on Zacks Investment Research (zacks.com).
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