by Ian Harvey
February 18, 2020
Veeva Systems continues on its road upwards, easily vaulting obstacles to set higher stock prices. This is the stock that is powering life sciences innovation.
Five days ago, “Armchair Trader Members” were already up 146% potential profits; this is now up to 189%, and expiry of the option isn’t until March 20.
And, for those traders on the sidelines, there is still time to take advantage of this growth!
It is expected that VEEV will become more recognized in the years to come. Presently, as a cloud computing stock, Veeva Systems usually isn't a top-of-mind pick for investors. The software outfit is focused on a specific industry niche (life sciences) and has a market cap of $22 billion -- and that's after the stock surged 57% in 2019.
Founded in 2008, VEEV is a relatively young company with its IPO in 2013. As a small and developing entity, the strong market acceptance of its products allowed VEEV to consistently grow revenues over 30% a year through 2018.
Now larger and more mature, the company continues to grow rapidly, although at a somewhat slower rate. 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. This growth is very profitable, operating margins are over 40% and earnings per share (EPS) have increased to $0.60 from $0.45 a share.
YOU NEED TO BE IN TO PROFIT!
Veeva provides cloud solutions for companies in the biotech, pharmaceutical, and health and wellness space. However, its marquee product, Veeva Vault, is also making the jump from clinical-trial and drug-production data management to the chemicals, cosmetics, and consumer goods realm. That's significant as Veeva is all set to hit $1 billion in annual revenue for the first time this year, and the adjacent consumer goods markets it wants to enter are as large as the biotech and pharmaceutical fields it already operates in.
Its industry-focused platform was built by collaborating with customers to develop a deep understanding of industry requirements and implementing best practices into its products. Because of its product breadth, customers often start with one module and expand into more modules over time. In the last three years, it has recorded subscription services revenue retention rates in excess of 120%, meaning customers spend 20% more this year than the previous year.
The opportunities ahead for the company look massive. Revenues have been increasing steadily at rates above 20% annually for the last couple of years -- they're forecast to end 2019 up 26%, including two small acquisitions -- and adjusted earnings are expected to be 33% higher.
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.
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%.
READ about the Original Trade – sent Tuesday, January 28, 2020…..HERE
Join us today and see what future trades will be recommended!
I also talked about Veeva Systems providing potential profits.....in the article.....
At that time, February 13, 2020, I mentioned that “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%; But now the option trade is up to $13.31, providing a potential profit of 189%.
And also, 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.
With Veeva is highly profitable, unlike many of its peers, which are foregoing profits to invest in growth, is it time to climb aboard? Last quarter, its net income grew 28.2% year over year and is now an impressive 29% of the top line. Now it's focused on a goal of achieving a $3 billion revenue run rate by the calendar year 2025, and it has a number of levers to ensure it can get there......
Therefore, the questions remain......
Is It Too Late To Get In On The Veeva Systems Options Trade?
How High Can The Stock Price Go?
Do You Wish To Be Part Of This Action?
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!