Veeva Systems (VEEV – Free Report) closed the most recent trading day at $288.42, moving -1.24% from the previous trading session. This change lagged the S&P 500’s daily gain of 0.17%. Elsewhere, the Dow gained 0.55%, while the tech-heavy Nasdaq lost 0.4%.
Coming into today, shares of the provider of cloud-based software services for the life sciences industry had lost 9.2% in the past month. In that same time, the Computer and Technology sector gained 4.39%, while the S&P 500 gained 3.19%.
Wall Street will be looking for positivity from Veeva Systems as it approaches its next earnings report date. This is expected to be December 1, 2021. On that day, Veeva Systems is projected to report earnings of $0.88 per share, which would represent year-over-year growth of 12.82%. Our most recent consensus estimate is calling for quarterly revenue of $465.31 million, up 23.25% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.57 per share and revenue of $1.83 billion. These totals would mark changes of +21.43% and +25.19%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Veeva Systems. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering 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 #2 (Buy).
Investors should also note Veeva Systems’s current valuation metrics, including its Forward P/E ratio of 81.73. For comparison, its industry has an average Forward P/E of 70.66, which means Veeva Systems is trading at a premium to the group.
Also, we should mention that VEEV has a PEG ratio of 4.49. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company’s expected earnings growth rate into account. VEEV’s industry had an average PEG ratio of 4.14 as of yesterday’s close.
The Internet – Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 185, putting it in the bottom 28% 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.
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