Veeva Systems (VEEV) closed at $201.56 in the latest trading session, marking a -3.05% move from the prior day. This move lagged the S&P 500's daily gain of 1.66%. Meanwhile, the Dow experienced a rise of 1.19%, and the technology-dominated Nasdaq saw an increase of 2.78%.
Heading into today, shares of the provider of cloud-based software services for the life sciences industry had gained 12.86% over the past month, outpacing the Medical sector's gain of 0.54% and the S&P 500's loss of 1.49%.
Investors will be eagerly watching for the performance of Veeva Systems in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $2.22, marking a 11.56% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $904.07 million, up 14.57% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $9.05 per share and revenue of $3.64 billion, which would represent changes of +11.73% and +13.96%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Veeva Systems. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Veeva Systems is currently sporting a Zacks Rank of #3 (Hold).
From a valuation perspective, Veeva Systems is currently exchanging hands at a Forward P/E ratio of 22.98. This valuation marks a discount compared to its industry average Forward P/E of 25.68.
Also, we should mention that VEEV has a PEG ratio of 0.66. 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 average PEG ratio for the Medical Info Systems industry stood at 3.35 at the close of the market yesterday.
The Medical Info Systems industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 72, finds itself in the top 30% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Originally published on zacks.com, part of the BLOX Digital Content Exchange.
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