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Veeva Systems (VEEV) Gains But Lags Market: What You Should Know

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Veeva Systems (VEEV) closed at $280.63 in the latest trading session, marking a +0.54% move from the prior day. This move lagged the S&P 500's daily gain of 1.09%.

Coming into today, shares of the provider of cloud-based software services for the life sciences industry had gained 11.93% in the past month. In that same time, the Computer and Technology sector gained 6.99%, while the S&P 500 gained 5.05%.

VEEV will be looking to display strength as it nears its next earnings release. In that report, analysts expect VEEV to post earnings of $0.78 per share. This would mark year-over-year growth of 18.18%. Our most recent consensus estimate is calling for quarterly revenue of $409.43 million, up 21.45% from the year-ago period.

VEEV's full-year Zacks Consensus Estimates are calling for earnings of $3.24 per share and revenue of $1.76 billion. These results would represent year-over-year changes of +10.2% and +20.46%, respectively.

It is also important to note the recent changes to analyst estimates for VEEV. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 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 has moved 0.66% higher. VEEV is currently a Zacks Rank #2 (Buy).

Looking at its valuation, VEEV is holding a Forward P/E ratio of 86.28. Its industry sports an average Forward P/E of 76.95, so we one might conclude that VEEV is trading at a premium comparatively.

Also, we should mention that VEEV has a PEG ratio of 5.97. 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. Internet - Software stocks are, on average, holding a PEG ratio of 4.29 based on yesterday's closing prices.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 186, which puts it in the bottom 27% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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