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Veeva Systems (VEEV) Stock Sinks As Market Gains: What You Should Know

In the latest trading session, Veeva Systems (VEEV) closed at $309.40, marking a -0.5% move from the previous day. This change lagged the S&P 500's daily gain of 0.17%. Meanwhile, the Dow lost 0.02%, and the Nasdaq, a tech-heavy index, added 0.38%.

Heading into today, shares of the provider of cloud-based software services for the life sciences industry had gained 10.27% over the past month, outpacing the Computer and Technology sector's gain of 8.01% and the S&P 500's gain of 2.33% in that time.

Wall Street will be looking for positivity from VEEV as it approaches its next earnings report date. On that day, VEEV is projected to report earnings of $0.68 per share, which would represent year-over-year growth of 25.93%. Our most recent consensus estimate is calling for quarterly revenue of $379.88 million, up 21.95% from the year-ago period.

Investors might also notice recent changes to analyst estimates for VEEV. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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. The Zacks Consensus EPS estimate remained stagnant within the past month. VEEV currently has a Zacks Rank of #4 (Sell).

Valuation is also important, so investors should note that VEEV has a Forward P/E ratio of 99.96 right now. For comparison, its industry has an average Forward P/E of 84.54, which means VEEV is trading at a premium to the group.

It is also worth noting that VEEV currently has a PEG ratio of 6.49. 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 was holding an average PEG ratio of 4.55 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 186, putting it in the bottom 28% 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.


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