Veeva Systems VEEV Gains But Lags Market What You Should Know

August
23, 2021

3 min read

This story originally appeared on Zacks

Veeva Systems (VEEV) closed the most recent trading day at $322.44, moving +0.54% from the previous trading session. This move lagged the S&P 500’s daily gain of 0.85%.

Prior to today’s trading, shares of the provider of cloud-based software services for the life sciences industry had lost 3.71% over the past month. This has lagged the Computer and Technology sector’s gain of 3.07% and the S&P 500’s gain of 2.85% in that time.

Wall Street will be looking for positivity from VEEV as it approaches its next earnings report date. This is expected to be September 1, 2021. In that report, analysts expect VEEV to post earnings of $0.86 per share. This would mark year-over-year growth of 19.44%. Our most recent consensus estimate is calling for quarterly revenue of $451.28 million, up 27.6% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.49 per share and revenue of $1.82 billion. These totals would mark changes of +18.71% and +24.39%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for VEEV. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.31% lower. VEEV is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, VEEV is currently trading at a Forward P/E ratio of 91.87. This represents a premium compared to its industry’s average Forward P/E of 57.19.

It is also worth noting that VEEV currently has a PEG ratio of 5.81. 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 Internet â€" Software was holding an average PEG ratio of 3.87 at yesterday’s closing price.

The Internet â€" Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 203, putting it in the bottom 21% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

Tech IPOs With Massive Profit Potential: Last years top IPOs surged as much as 299% within the first two months. With record amounts of cash flooding into IPOs and a record-setting stock market, this year could be even more lucrative. 

See Zacks’ Hottest Tech IPOs Now >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Veeva Systems Inc. (VEEV): Free Stock Analysis Report
 
To read this article on Zacks.com click here.

Share this post