Buy This Tech Stock on the Dip Before Earnings for Big Growth?

Veeva Systems Inc. VEEV offers cloud-based solutions for the pharmaceutical and life sciences industries. The stock has crushed the broader tech sector over the last five years and its growth outlook remains strong.

Click to get this free report, Zacks Investment Research

– Zacks

But VEEV is trading nearly 15% below its records heading into its Q3 earnings release that’s due out after the closing bell on Wednesday, December 1. And investors might want to consider buying Veeva stock on the dip for longer-term tech growth.

The Basics

Veeva sells cloud-based offerings geared toward the pharmaceutical and life sciences industries. The company helps its roughly 1,100 clients improve and streamline their critical business functions, with software and services geared to everything from research and development and regulatory processes to training and nearly anything else a firm in these fields might need.

VEEV’s clients include biotech startups, pharmaceutical powerhouses, and beyond. The firm’s overall goal is to help “companies of all sizes bring products to market faster and more efficiently, and maintain compliance.”

The California-based firm’s offerings have caught on around the industry and its subscription-focused offerings have helped it grow rapidly and steadily. Veeva has grown its revenue by at least 25% every year since it went public in 2013, including 33% sales growth last year (its fiscal 2021).

VEEV topped our Q2 earnings and revenue estimates in September, with sales up 29% and adjusted earnings 30% higher. Zacks estimates call for Veeva to continue its impressive top-line growth trend, with fiscal 2022 revenue set to climb by 25% to reach $1.83 billion. The company is also projected to post 21% higher adjusted earnings.

Looking ahead to next year, Veeva is projected to post another 15% earnings growth on nearly 20% higher revenue. The company has also consistently beaten our bottom-line estimates and its overall adjusted EPS outlook has improved since its last report to help it grab a Zacks Rank #2 (Buy) right now.

Click to get this free report, Zacks Investment Research
Image Source: Zacks Investment Research

Bottom Line

Veeva stock has skyrocketed 520% in the last five years and 105% in the past 24 months to easily outpace its industry during both periods. A recent slowdown might set up an enticing buying opportunity, with VEEV up only 6% in the last year vs. its industry’s 18% climb.

The stock closed regular trading Monday about 14% below its August records. The recent drop does have Veeva sitting below both its 50-day and 200-day moving averages recently.

But its current Zacks consensus price target represents over 17% upside to its current levels and the stock began to pop above oversold RSI levels (30 or under) last week. And Veeva stock could still have plenty of runway left since it only hovers at 38. Meanwhile, the Nasdaq 100-tracking QQQ ETF is at 60, after falling below overbought RSI levels early last week.

Veeva’s pullback has cooled off its valuation as well, with it trading at 30% discounts to its own year-long highs in terms of both forward earnings and sales. Plus, 13 of the 17 brokerage recommendations Zacks has for the stock are either “Strong Buys” or “Buys.” On top of that, VEEV boasts a solid balance sheet and its cloud software and services cater to vital industries.


Tech IPOs With Massive Profit Potential: Last years top IPOs surged as much as 299% within the first two months. With record amounts of cash flooding into IPOs and a record-setting stock market, this year could be even more lucrative. 

See Zacks’ Hottest Tech IPOs Now >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

 

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

 

To read this article on Zacks.com click here.

 

Zacks Investment Research

News Related

OTHER NEWS

Take Your Excel and Data Analytics Skills to the Next Level

Each year, the business world relies even more on data. As an entrepreneur, you gather tons of data on processes, customers, marketing, and so much more. If you’re not doing ... Read more »

Ericsson (ERIC) Beats Earnings & Revenue Estimates in Q4

Ericsson ERIC reported impressive fourth-quarter 2021 results, wherein both the bottom and the top lines beat the Zacks Consensus Estimate.The Sweden-based telecom gear maker continues to expand its footprint, despite ... Read more »

Etsy (ETSY) Moves 3.5% Higher: Will This Strength Last?

Etsy (ETSY) shares ended the last trading session 3.5% higher at $154.06. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. ... Read more »

Catalent (CTLT) to Report Q2 Earnings: What's in the Cards?

Catalent, Inc. CTLT is scheduled to report second-quarter fiscal 2022 results on Feb 1, before market open. – Zacks In the last-reported quarter, the company’s earnings of 71 cents per ... Read more »

These Are The Ten Stocks With Worst Start To 2022

The stock market didn’t have the best start in 2022. Worries over rising coronavirus cases and inflation have made investors less confident in equities. Investors, however, could use the current ... Read more »

Is Jack Henry & Associates a Smart Stock to Buy Now?

The shares of S&P 500 fintech company Jack Henry & Associates (JKHY) have been declining in price this year due to the broader market weakness. So, as the Fed prepares ... Read more »

4 Buy the Dip Semiconductor Stocks That Offer Growth and Value

The global semiconductor industry achieved unprecedented growth last year thanks to hefty private capital investments and government funding. Because this trend is expected to continue in 2022, we think it ... Read more »

5 Big Cap Earnings All Stars to Watch This Week

Earnings season picks up steam this week as over 400 companies are expected to report, many of them being large cap companies. – Zacks The large caps have outperformed over ... Read more »

Zions' (ZION) Q4 Earnings & Revenues Beat Estimates, Costs Up

Zions Bancorporation’s ZION fourth-quarter 2021 net earnings per share of $1.34 surpassed the Zacks Consensus Estimate by a penny. The bottom line, however, decreased 19.3% from the year-ago quarter’s number.Results ... Read more »

3M's (MMM) Earnings and Revenues Surpass Estimates in Q4

3M Company MMM reported solid fourth-quarter 2021 results. Its earnings surpassed estimates by 13.79% and sales exceeded the same by 0.08%. This is the company’s eighth consecutive quarter of earnings ... Read more »

5 Simple, Proven Ways to Improve Contract Management

Back-office operations are crucial for keeping your company running smoothly, and adequate management of your business’s contracts will keep your efforts on track, helping your team hit deadlines and improve productivity while ... Read more »

5 Tips to Transform Your Business in the Hybrid-Work Era

Last year, thousands of companies were forced to adopt remote work in the interest of operational continuity and worker safety. The resulting ad hoc models weren’t always pretty or perfect, ... Read more »

The Power of Purpose: How a Mandatory Staff Meeting Brought My Team Closer Than Ever Before

After I announced a mandatory staff meeting for December 17 one year, some members were upset. Getting together on the cusp of the holidays would conflict with some holiday travel plans, ... Read more »

Bob Dylan's Entire Music Catalog Sold for Estimated $200 Million

Sony Music Group has long been an entertainment industry giant that has continued to purchase and gain ownership over major music catalogs. Dave J Hogan | Getty Images Just last ... Read more »

Analysts Predict Elon Musk Will Earn Billions This Year Despite Not Taking Home a Salary From Tesla

If predictions for Tesla are correct, CEO Elon Musk is going to have a really good 2022.  FREDERIC J. BROWN | Getty Images Analysts predict that Tesla will report strong financial ... Read more »

The Top SEO Trends for 2022

A new year is a perfect opportunity to take a close look at your website and make sure your SEO is doing all the work it can be. Best SEO ... Read more »

Lofoten: 4.9 billion kroner contract for the operation of hydrogen ferries finalized

The Norwegian Public Roads Administration has signed a contract with Torghatten Nord to operate hydrogen ferries between Bodø and Lofoten. The contract has a value of NOK 4.9 billion. Torghatten ... Read more »

Why I think this cheap FTSE 250 stock looks set to accelerate higher

Business development to success and FTSE 100 250 350 growth concept. Worldwide, the FTSE 250‘s TI Fluid Systems (LSE: TIFS) is one of the leading players in the automotive industry. ... Read more »

Markets are on a roller coaster ride. Here' what to keep in mind as stocks whiplash

Morsa Images | E+ | Getty Images The U.S. stock market has been on a rollercoaster ride of late. Stocks slumped again on Tuesday after a wild trading session a ... Read more »

4 Ways to Level Up Your CEO Game

When your business is in its infancy, it may seem impossible to attain the success of execs like Jeff Bezos or Elon Musk. But, of course, even these standouts have ... Read more »

Paul McCartney's Handwritten 'Hey Jude' Notes to Be Auctioned as NFT

NFTs have certainly made a splash as of recently, with everything from original artwork, to social media posts to event tickets being sold digitally to respective owners. Dimitrios Kambouris | ... Read more »

SEC chair eyes tougher cyber rules to protect investors against hackers

SEC chairman Gary Gensler testifies before a Senate Banking, Housing, and Urban Affairs Committee hearing on Sept. 14, 2021 in Washington.Evelyn Hockstein-Pool/Getty Images Securities and Exchange Commission chairman Gary Gensler ... Read more »

3 investing lessons from the 1929 stock market crash

Tired or stressed businessman sitting on the walkway in panic digital stock market crash financial background As investors pay close attention to what might happen next in stock markets, I ... Read more »

3 U.S. States, D.C. Sue Google for 'Deceptive' Location Tracking

Texas, Indiana, Washington State and the District of Columbia each filed suit against Google in their respective state courts on Monday, alleging that the company has implemented “dark patterns” and deceptive ... Read more »

12 Ways to Boost Your Confidence in 2022

Confidence is one of the most important qualities to have in life. It impacts you on a personal level, professionally and even socially. While it’s easy to assume confident people ... Read more »

What Colorado's Marshall Fire Taught Me About Building Safe and Healthy Homes

As the Marshall Fire, the most destructive fire in Colorado history, tore through Boulder County last month, those of us who are homebuilders in the area watched anxiously to see ... Read more »

4 Ways to Motivate Your Startup Team and Get Major Results

You’ve got smart, ambitious employees, clear project goals and great perks, but something in your company isn’t quite right. Maybe the startup culture you envisioned is fading, or never really kicked ... Read more »

What's next for the IAG share price in 2022?

Aircraft wind on the sunrise sky background. Might we be reaching the Covid end-game sooner than expected? That should be good news for travel companies like International Consolidated Airlines (LSE: ... Read more »

This Game-Changing Investment App Will Help You Build Long-Term Wealth and Satisfy Your 'Voyeuristic' Desire to See Where Other People Put Their Money

Women are better investors than men, a 2021 Fidelity study found. Yet some estimates suggest that as few as 26% of women have invested in the stock market, a staggering ... Read more »

Here are options if you aren't eligible for Navient's student loan forgiveness settlement

For years, many student loan borrowers have suffered under the weight of excessive debt. Some 66,000 borrowers finally got relief when the recent Navient settlement erased their balances. (Here's how ... Read more »

IMF says UK should consider 'well-targeted' action on energy prices

IMF Chief Economist Gita Gopinath speaks in her office during the Spring Meetings of the World Bank Group and IMF in Washington (Reuters) – Britain should consider more support for ... Read more »

Is DatChat Stock a Buy After it Sent a Letter of Intent to Buy Avila Security?

Communications software company DatChat (DATS) made its stock market debut on Aug. 13, 2021 and has garnered significant investor attention in the wake of a letter of intent it sent ... Read more »

Vajro Secures $8.5 Million In Series A

Vajro, one of the fastest growing automated mobile app builders in the world, has raised $8.5 million in Series A round. Company handle Vajro enables e-commerce store owners and service ... Read more »

General Electric (GE) Q4 Earnings and Revenues Miss Estimates

General Electric (GE) came out with quarterly earnings of $0.82 per share, missing the Zacks Consensus Estimate of $0.83 per share. This compares to earnings of $0.64 per share a ... Read more »

Logitech (LOGI) Tops Q3 Earnings Estimates, Raises Sales View

Logitech LOGI on Monday reported better-than-expected third-quarter fiscal 2022 results. The company’s third-quarter non-GAAP earnings of $1.55 per share surpassed the Zacks Consensus Estimate of $1.31. However, the bottom line ... Read more »

A. O. Smith (AOS) to Report Q4 Earnings: What's in the Cards?

A. O. Smith Corporation AOS is scheduled to report fourth-quarter 2021 results on Jan 27, before market open.The company delivered an earnings surprise of 16.82%, on average, in the trailing ... Read more »

Is ResMed a Buy Under $250?

Currently trading at less than $250, ResMed Inc. (RMD) exhibited solid fundamental performance in its last reported quarter based on its strong sales growth across its product portfolio. So, given ... Read more »

Grab These 3 Real Estate Mutual Funds for Sparkling Returns

Mutual funds are the cheapest and most convenient option for investors looking to park their money in the real estate sector. This category of funds offers solid protection against inflation. ... Read more »

Your Answer to This Crucial Question Will Make or Break Your Business's Growth

Do you want to be the Queen or do you want to be the Bank? In other words, as a business owner, do you want to have control or do ... Read more »

This Is Why Chevron (CVX) is Set for Strong Q4 Earnings

Chevron Corporation CVX is set to release fourth-quarter results before the opening bell on Jan 28. The current Zacks Consensus Estimate for the to-be-reported quarter is a profit of $3.07 ... Read more »
On free-english-test.com you will find lots of free English exam practice materials to help you improve your English skills: grammar, listening, reading, writing, ielts, toeic