Veeva Systems (VEEV – Free Report) closed the most recent trading day at $185.66, moving -1.28% from the previous trading session. This move lagged the S&P 500’s daily loss of 0.03%. At the same time, the Dow added 0.45%, and the tech-heavy Nasdaq lost 0.05%.
Heading into today, shares of the provider of cloud-based software services for the life sciences industry had gained 10.29% over the past month, outpacing the Computer and Technology sector’s gain of 4.69% and the S&P 500’s gain of 6.23% in that time.
Investors will be hoping for strength from Veeva Systems as it approaches its next earnings release, which is expected to be December 1, 2022. The company is expected to report EPS of $1.07, up 10.31% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $545.78 million, up 14.63% from the year-ago period.
VEEV’s full-year Zacks Consensus Estimates are calling for earnings of $4.16 per share and revenue of $2.14 billion. These results would represent year-over-year changes of +11.53% and +15.77%, respectively.
Investors should also note any recent changes to analyst estimates for Veeva Systems. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Veeva Systems is currently sporting a Zacks Rank of #4 (Sell).
In terms of valuation, Veeva Systems is currently trading at a Forward P/E ratio of 45.22. For comparison, its industry has an average Forward P/E of 44.58, which means Veeva Systems is trading at a premium to the group.
Investors should also note that VEEV has a PEG ratio of 2.73 right now. 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. Internet – Software stocks are, on average, holding a PEG ratio of 2.2 based on yesterday’s closing prices.
The Internet – Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 59, which puts it in the top 24% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.