In the latest trading session, Veeva Systems (VEEV) closed at $87.08, marking a -0.88% move from the previous day. This move was narrower than the S&P 500’s daily loss of 1.54%. At the same time, the Dow lost 1.49%, and the tech-heavy Nasdaq lost 2.17%.
Coming into today, shares of the provider of cloud-based software services for the life sciences industry had gained 2.69% in the past month. In that same time, the Computer and Technology sector lost 4.64%, while the S&P 500 lost 6.77%.
Wall Street will be looking for positivity from VEEV as it approaches its next earnings report date. This is expected to be February 26, 2019. In that report, analysts expect VEEV to post earnings of $0.40 per share. This would mark year-over-year growth of 73.91%. Our most recent consensus estimate is calling for quarterly revenue of $227.54 million, up 23.05% from the year-ago period.
VEEV’s full-year Zacks Consensus Estimates are calling for earnings of $1.58 per share and revenue of $857.28 million. These results would represent year-over-year changes of +69.89% and +25.05%, respectively.
Any recent changes to analyst estimates for VEEV should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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. Over the past month, the Zacks Consensus EPS estimate has moved 8.38% higher. VEEV is currently sporting a Zacks Rank of #1 (Strong Buy).
Investors should also note VEEV’s current valuation metrics, including its Forward P/E ratio of 55.6. This represents a premium compared to its industry’s average Forward P/E of 50.95.
Meanwhile, VEEV’s PEG ratio is currently 2.86. 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 – Software industry currently had an average PEG ratio of 2.7 as of yesterday’s close.
The Internet – Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 25, which puts it in the top 10% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.
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