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Veeva Systems (VEEV) shares fall as the market gains: what you need to know


Veeva Systems (VEEV) closed the last trading day at $159.61, changing -0.94% from the previous trading session. This change lagged the S&P 500’s 2.28% gain on the day. Elsewhere, the Dow gained 2.13%, while the tech-heavy Nasdaq gained 5.02%.

Prior to today’s trading, shares of the cloud-based software service provider for the life sciences industry had lost 6.88% in the past month. That was narrower than the IT & Technology sector’s 8.41% loss and trailed the S&P 500’s 4.61% loss during that time.

Investors are hoping for strength from Veeva Systems as its next earnings release nears. In that report, analysts expect Veeva Systems to post earnings of $1.04 per share. This would mark a year-over-year growth of 15.56%. Our most recent consensus estimate calls for quarterly revenue of $552.24 million, up 13.75% from the prior year period.

For the full year, our Zacks consensus estimates call for earnings of $4.19 per share and revenue of $2.14 billion, which would represent swings of +12.33% and +15, 84%, respectively, compared to the previous year.

Investors should also note any recent changes to analyst estimates for Veeva Systems. These revisions generally reflect the latest short-term trading trends, which may change frequently. Thus, positive revisions to estimates reflect analysts’ optimism about the company’s business and profitability.

Research indicates that these revisions to estimates are directly correlated to near-term stock price dynamics. Investors can take advantage of this by using the Zacks ranking. This model accounts for these estimation changes and provides a simple and actionable scoring system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven track record of outperformance, with #1 stocks returning an average of +25% per year since 1988. Over the past few months, the Zacks Consensus EPS estimate has fallen 0.03%. Veeva Systems is currently a Zacks Rank #3 (Hold).

In terms of valuation, Veeva Systems is currently trading at a forward P/E ratio of 38.5. Its industry sports an average Forward P/E of 40.15, so we can conclude that Veeva Systems is trading at a comparative discount.

Meanwhile, VEEV’s PEG ratio is currently 2.45. This popular measure is similar to the widely known P/E ratio, except that the PEG ratio also takes into account the company’s expected earnings growth rate. Internet – Software held an average PEG ratio of 2 at yesterday’s closing price.

The Internet – Software industry is part of the IT and technology sector. This group has a Zacks industry ranking of 64, which places it in the top 26% of over 250 industries.

The Zacks Industry Rankings are ranked from best to worst in terms of the average Zacks Ranking of individual companies in each of these industries. Our research shows that the top 50% of industries outperform the bottom half by a factor of 2 to 1.

Be sure to use to track all of these stock movement metrics, and more, in future trading sessions.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.



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