Should You be Confident in the Long-Term Growth Durability of Veeva Systems (VEEV)?

TimesSquare Capital Management, an equity investment management company, released its “U.S. Focus Growth Strategy” first-quarter investor letter. A copy of the letter can be downloaded here. In the first quarter, the strategy returned 11.72% (gross) and 11.49% (net) compared to 9.50% for the Russell Midcap Growth Index. The first-quarter performance was barbelled, particularly for U.S. small- to mid-cap equities. The best-performing stocks were those with the highest quality (return on equity) or low valuations (price/earnings). Stocks with higher risk (beta) or stocks with hyper-growth expectations were also rewarded. In addition, please check the fund’s top five holdings to know its best picks in 2024.

TimesSquare Capital U.S. Focus Growth Strategy highlighted stocks like Veeva Systems Inc. (NYSE:VEEV), in the first quarter 2024 investor letter. Veeva Systems Inc. (NYSE:VEEV) offers cloud-based software for the life sciences industry. The one-month return of Veeva Systems Inc. (NYSE:VEEV) was -9.32%, and its shares lost 7.25% of their value over the last 52 weeks. On June 21, 2024, Veeva Systems Inc. (NYSE:VEEV) stock closed at $184.88 per share with a market capitalization of $29.886 billion.

TimesSquare Capital U.S. Focus Growth Strategy stated the following regarding Veeva Systems Inc. (NYSE:VEEV) in its first quarter 2024 investor letter:

"Also, among our Health Care positions there was a 20% return from Veeva Systems Inc. (NYSE:VEEV), which provides cloud-based systems for the life sciences industries, from R&D to commercialization. The pace of bookings and new deals was very strong with significant new business from the Top 20 biopharma companies across Veeva’s suite of offerings. The company has been very thoughtful about building new products for its customers, which gives us confidence in the long-term durability of Veeva’s growth. Veeva also materially increased its margin targets."

A team of IT experts monitoring a network of computers managing the medical content and communications.

Veeva Systems Inc. (NYSE:VEEV) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 46 hedge fund portfolios held Veeva Systems Inc. (NYSE:VEEV) at the end of the first quarter which was 48 in the previous quarter. The first revenue of Veeva Systems Inc. (NYSE:VEEV) was $650 million with non-GAAP operating income of $261 million. While we acknowledge the potential of Veeva Systems Inc. (NYSE:VEEV) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

We discussed Veeva Systems Inc. (NYSE:VEEV) in another article and shared Conestoga Capital Advisors Mid-Cap Strategy's views on the company. TimesSquare Capital Management U.S. Focus Growth Strategy added Veeva Systems Inc. (NYSE:VEEV) to its portfolio in the fourth quarter 0f 2023. In addition, please check out our hedge fund investor letters Q1 2024 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.