by Ian Harvey
February 13, 2020
Veeva Systems, the leading provider of cloud-based software for the global life sciences industry, is likely to have more fuel in the tank.
And, Armchair Trader Members have already made 146% potential profits on a call option trade – and more profit is expected!
Veeva is the leading provider of cloud-based software for the global life sciences industry. The company continues to grow rapidly, and in the third quarter of its current fiscal year, revenues grew 25%.
Sales of software subscriptions grew 27% and accounted for 81% of all revenues, while services revenues grew 16% and accounted for the remaining 19% of revenues.
Veeva Systems announced an increasing number of life sciences companies are adopting applications in the Veeva Vault RIM Suite to streamline regulatory information management. More than 200 companies are now using Vault RIM applications to modernize their regulatory business operations for faster submission development and better visibility across processes for improved compliance.
Vault RIM brings together regulatory content and data to give life sciences companies of all sizes one authoritative source for product registration information, submission documents, published dossiers, and health authority interactions.
Veeva Systems continues to deliver new innovations in Veeva Vault that improve how teams work together. Veeva Vault’s new collaborative authoring with Microsoft Office enables multiple users to simultaneously author and edit documents in Microsoft Office desktop applications directly from Veeva Vault.
The Recommended Trade – sent Tuesday, January 28, 2020…..
Cloud solutions provider Veeva Systems Inc. (NYSE:VEEV), a growing mid cap company within the Healthcare sector, gained 57.5% last year; and in the past three years has provided a total return of 246%, as well as 863% in just a bit over five years.
Veeva has been a solid growth play in the life sciences industry. It continues to impress investors with robust growth across its business segments last year, particularly with Veeva Commercial Cloud and Veeva Vault.
On average over the last three years, Veeva Systems Inc. has grown earnings per share (EPS) by 44% each year (using a line of best fit). Its revenue is up 26% over last year.
The company has improved itself over the last few years due to the combination of strong revenue growth with medium-term earnings per share improvement.
But, despite the run, Veeva stock has slipped 15% in the last six months. This might offer a better buying opportunity as VEEV rests just below its 200-day moving average—where it has rarely stayed for long over the last several years……CONTINUE READING…..
Option trade to consider: Buy the VEEV MAR 20 2020 150.000 CALLS at approximately $4.60.
YOU NEED TO BE IN TO PROFIT!
Veeva Systems Providing Potential Profits.....
“Armchair Trader Members” of Stock Options Made Easy executed an options call trade on Veeva Systems on Tuesday, January 28, 2020 – as mentioned above – at a cost of $4.60.
The option trade climbed to $11.30, providing a potential return of 146%; however, a pre-determined sell price was recommended at $9.20 at the time of purchase – providing a profit of 100% - although many traders prefer to exit on their own volition.
But, this trade does not expire until March 20, 2020, therefore allowing further profits to be made, or for those that have not bought in as yet, a chance to execute a trade.
Veeva Systems will announce financial results for its fourth quarter and full fiscal year which ended January 31, 2020 after market close on March 3, 2020.
The company is expected to report EPS of $0.52, up 15.56% from the prior-year quarter. Meanwhile, the Consensus Estimate for revenue is projecting net sales of $297.70 million, up 28.14% from the year-ago period.
EPS should increase from $2.17 in the just-completed fiscal year to $2.55 in the January-2021 fiscal year as revenues grow by 27%. Comparisons will improve as the year goes on as investments in future growth will fade.
Join us today and see what future trades will be recommended!
Factors Effecting Veeva Systems Stock.....
The Veeva Vault RIM Suite includes Vault Registrations, Vault Submissions, Vault Submissions Publishing, and Vault Submissions Archive for fully integrated RIM capabilities on a single cloud platform. Vault RIM is part of Veeva Development Cloud, a unified suite of applications for clinical, regulatory, quality, and safety to help organizations drive end-to-end business processes across R&D and manufacturing.
Also, while VEEV’s business outside the life sciences industry is very small, it has been growing rapidly. For instance, the company is currently having active conversations with seven of the top 20 consumer products companies worldwide.
While the stock is not cheap on an absolute basis at 57X forward EPS, it is attractively valued relative to other software stocks and the growth universe in general because low interest rates are expanding the valuation multiples of companies with exceptional growth prospects.
Analysts’ Positivity Regarding Veeva Systems.....
Veeva Systems stock currently has a consensus rating of “Buy” and a consensus target price of $177.12.
Veeva Systems was upgraded by analysts at ValuEngine from a “sell” rating to a “hold” rating in a research report issued on Tuesday, February 4th
Also, Morgan Stanley upgraded shares of Veeva Systems from an equal weight rating to an overweight rating in a research note released on Monday, January 13th. They currently have $175.00 target price on the technology company’s stock, up from their prior target price of $160.00.
The question remains......Is It Too Late To Get In On This Veeva Systems Options Trade?
Will Veeva Systems Continue To Move Up?
For answers, join us here at Stock Options Made Easy, and get the full details on the next trade.
AS ALWAYS THE DECISION IS YOURS!
An Important Note: That any suggestions for options trade considerations require investors/traders to use their own discretion as to when to enter or exit! As well, it is advisable to do further research and due diligence before executing your trade.
It is sometimes best to exit a trade, if there is already sufficient profit accrued, before an earnings report is presented. GREED can be the undoing of a nice profit!