VEEV Stock: The Life Sciences Cloud Player With Triple-Digit Upside

Veeva Systems Stock
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Veeva Systems Stock Dominates in the Cloud Computing Space

Today’s stock is one of the best examples of  a company growing slowly and steadily through excellence in products and services. By targeting big and expanding markets and delivering impressive results, Veeva Systems Inc (NYSE:VEEV) has grabbed the attention of growth investors.

Veeva Systems is a leading provider of cloud computing solutions for the global life sciences industry. It builds software that helps the companies in this industry understand customers better and bring their products to market faster.

Therefore, VEEV stock is a promising play on the rising cloud computing technology trend. Its products are in good demand, which is likely to continue.

In simple terms, cloud computing involves using hardware and software hosted by a third party on a network, instead of using your own computer for processing, storing, and managing data. All you need is an Internet connection to start using these resources. It helps save costs and improve efficiency.

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Each industry has its own requirements, and Veeva Systems has established itself as a leading player in the life sciences industry.

Besides its customer relationship management (CRM) application, the company’s numerous other applications help in marketing, content management, research and development, and maintaining compliance with government regulations.

We were very bullish on Veeva Systems when we covered it in June 2017. It has gone up by more than 33% since then. We maintain our optimism going forward, mainly because the company continues to grow in a high-potential industry.

Moreover, it is rolling out applications in other industries like chemicals and consumer goods. These new sets of customers should push VEEV stock higher.

Veeva Systems is the top life sciences software vendor after SAP SE (NYSE:SAP), as per a recent report by Apps Run the World. In this niche market, Veeva is ahead of big names like Microsoft Corporation (NASDAQ:MSFT) and salesforce.com, inc. (NYSE:CRM). (Source: “Top 10 Life Sciences Software Vendors and Market Forecast 2016-2021,” Apps Run the World, January 25, 2018.)

The company is expected to maintain its lead position as it performs well in its market and is on its way to becoming multi-billion-dollar cloud leader.

As per the company’s estimates, Veeva’s total addressable market is now about more than $9.0 billion. “Veeva Vault” adoption has been accelerating, with more than 500 customers now using the product. (Source: “Veeva Systems Investor and Analyst Day,” Veeva Systems Inc, October 4, 2018)

This is evident from the strong financial results that Veeva Systems has been posting.

Total revenues for the second quarter were $209.6 million, an increase of 25% year-over-year. The net income was $50.3 million, which was an increase of 30% year-over-year. (Source: “Veeva Announces Fiscal 2019 Second Quarter Results,” Veeva Systems Inc, August 23, 2018.)

This ongoing strength across revenue, operating margins, and cash flow led the company to raise its guidance for the second half of the year.

Veeva Systems stock has gained more than 50% in the past year, as the following chart shows. And the momentum is expected to continue in the years ahead.

VEEV Graph Stock Chart

Chart courtesy of StockCharts.com

Analyst Take

Veeva Systems Inc builds cloud-based software for the global life sciences industry. Its commitment to its products and customer service have resulted in the accumulation of more than 650 clients, ranging from the world’s largest pharmaceutical companies to emerging biotechnology firms.

And this trend is expected to continue, which means better days are ahead for VEEV stock. The market for the company’s products is global and rapidly evolving. Investors might want to consider Veeva Systems stock for the long term.