In the latest market close, Veeva Systems (VEEV – Free Report) reached $217.75, with a +0.21% movement compared to the previous day. The stock outperformed the S&P 500, which registered a daily loss of 1.54%. On the other hand, the Dow registered a loss of 1.63%, and the technology-centric Nasdaq decreased by 1.63%.
The provider of cloud-based software services for the life sciences industry’s stock has dropped by 6.53% in the past month, falling short of the Computer and Technology sector’s gain of 0.11% and the S&P 500’s loss of 2.2%.
Market participants will be closely following the financial results of Veeva Systems in its upcoming release. In that report, analysts expect Veeva Systems to post earnings of $1.58 per share. This would mark year-over-year growth of 14.49%. Simultaneously, our latest consensus estimate expects the revenue to be $698.28 million, showing a 10.73% escalation compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $6.45 per share and a revenue of $2.72 billion, indicating changes of +33.26% and +15.24%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for Veeva Systems. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts’ positivity towards the company’s business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there’s been a 0.95% rise in the Zacks Consensus EPS estimate. Veeva Systems is currently a Zacks Rank #3 (Hold).
From a valuation perspective, Veeva Systems is currently exchanging hands at a Forward P/E ratio of 33.68. This valuation marks a premium compared to its industry’s average Forward P/E of 28.07.
Meanwhile, VEEV’s PEG ratio is currently 1.29. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. The Internet – Software was holding an average PEG ratio of 2.18 at yesterday’s closing price.
The Internet – Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 29, putting it in the top 12% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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