Veeva Systems (VEEV) Stock Slides as Market Rises: Facts to Know Before You Trade

In the latest trading session, Veeva Systems (VEEV) closed at $172.52, marking a -1.21% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 0.08% for the day. On the other hand, the Dow registered a loss of 0.18%, and the technology-centric Nasdaq increased by 0.1%.

The provider of cloud-based software services for the life sciences industry's stock has dropped by 10.7% in the past month, falling short of the Medical sector's loss of 6.98% and the S&P 500's loss of 1.74%.

Market participants will be closely following the financial results of Veeva Systems in its upcoming release. The company is predicted to post an EPS of $2.12, indicating a 7.61% growth compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $857.33 million, reflecting a 12.95% rise from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $8.77 per share and revenue of $3.59 billion, which would represent changes of +8.27% and +12.47%, 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 a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been a 0.17% rise in the Zacks Consensus EPS estimate. Veeva Systems is currently a Zacks Rank #2 (Buy).

Digging into valuation, Veeva Systems currently has a Forward P/E ratio of 19.91. For comparison, its industry has an average Forward P/E of 19.91, which means Veeva Systems is trading at no noticeable deviation to the group.

One should further note that VEEV currently holds a PEG ratio of 0.84. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. VEEV's industry had an average PEG ratio of 1.13 as of yesterday's close.

The Medical Info Systems industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 85, which puts it in the top 35% 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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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Veeva Systems Inc. (VEEV): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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