NYSE:VEEV—Positioned as a High-Growth Stock, Ready for a Potential Breakout.

Groth investors are looking for stocks showing high revenue and EPS growth. We will have a look here to see if VEEVA SYSTEMS INC-CLASS A (NYSE:VEEV) is suited for growth investing, while it is forming a base and may be ready to breakout. Investors should of course do their own research, but we spotted VEEVA SYSTEMS INC-CLASS A showing up in our growth with base formation screen, so it may be worth spending some more time on it.

Understanding NYSE:VEEV's Growth

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NYSE:VEEV was assigned a score of 8 for growth:

• The Earnings Per Share has grown by an nice 13.83% over the past year.
• VEEV shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 35.83% yearly.
• Looking at the last year, VEEV shows a quite strong growth in Revenue. The Revenue has grown by 10.55% in the last year.
• The Revenue has been growing by 25.56% on average over the past years. This is a very strong growth!
• VEEV is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.87% yearly.
• Based on estimates for the next years, VEEV will show a quite strong growth in Revenue. The Revenue will grow by 12.03% on average per year.

Looking at the Health

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NYSE:VEEV has earned a 9 out of 10:

• An Altman-Z score of 23.06 indicates that VEEV is not in any danger for bankruptcy at the moment.
• With an excellent Altman-Z score value of 23.06, VEEV belongs to the best of the industry, outperforming 97.67% of the companies in the same industry.
• There is no outstanding debt for VEEV. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
• VEEV has a Current Ratio of 5.64. This indicates that VEEV is financially healthy and has no problem in meeting its short term obligations.
• VEEV has a better Current ratio (5.64) than 81.40% of its industry peers.
• A Quick Ratio of 5.64 indicates that VEEV has no problem at all paying its short term obligations.
• VEEV has a better Quick ratio (5.64) than 81.40% of its industry peers.

Analyzing Profitability Metrics

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:VEEV has achieved a 9:

• VEEV has a better Return On Assets (10.85%) than 97.67% of its industry peers.
• The Return On Equity of VEEV (12.94%) is better than 95.35% of its industry peers.
• VEEV's Return On Invested Capital of 8.10% is amongst the best of the industry. VEEV outperforms 97.67% of its industry peers.
• VEEV had an Average Return On Invested Capital over the past 3 years of 13.53%. This is significantly above the industry average of 3.93%.
• The 3 year average ROIC (13.53%) for VEEV is well above the current ROIC(8.10%). The reason for the recent decline needs to be investigated.
• The Profit Margin of VEEV (24.68%) is better than 95.35% of its industry peers.
• VEEV has a Operating Margin of 17.54%. This is amongst the best in the industry. VEEV outperforms 95.35% of its industry peers.
• VEEV has a Gross Margin of 70.93%. This is in the better half of the industry: VEEV outperforms 74.42% of its industry peers.

How do we evaluate the setup for NYSE:VEEV?

Alongside the Technical Rating, ChartMill assigns a Setup Rating to evaluate the consolidation level of a stock. This rating, ranging from 0 to 10, is updated daily and considers various short-term technical indicators. The current setup rating for NYSE:VEEV is 8:

VEEV has a bad technical rating, but it does show a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is a resistance zone just above the current price starting at 182.99. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 178.46, a Stop Loss order could be placed below this zone.

Our Strong Growth screener lists more Strong Growth stocks and is updated daily.

Our latest full fundamental report of VEEV contains the most current fundamental analsysis.

Our latest full technical report of VEEV contains the most current technical analsysis.

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.