Core Insights - Veeva Systems (VEEV) is experiencing strong momentum in its next-gen Vault CRM, with significant customer adoption and strategic positioning highlighted in fiscal Q1 2026 results [1][3] - The platform has over 80 live deployments, with 28 new customers added or migrated in the quarter, indicating a market shift towards Vault's life sciences functionality [1][7] - Veeva aims to exceed 200 Vault CRM customers by the end of fiscal 2026, a notable increase from previous years, with three of the top 20 global biopharma companies now using Vault CRM [1][7] Product Developments - Veeva Systems introduced CRM Pulse, a new data layer to enhance segmentation and targeting, enriching the CRM experience [2] - Upcoming features such as CRM Bot, voice control, and natural language search are expected to launch by the end of 2025, enhancing the platform's AI capabilities [2][7] Financial Performance - Subscription revenues for Q1 grew 19% year over year to $634.8 million, with Vault CRM significantly contributing to this growth as it replaces legacy systems and captures market share [3] - The stock has gained 32.8% year-to-date, outperforming the industry growth of 8.5% [6] Valuation and Estimates - Veeva Systems trades at a forward price-to-sales ratio of 13.99, above the industry average, and carries a Value Score of C [9] - The Zacks Consensus Estimate for fiscal 2026 earnings implies a 15.8% increase from the previous year [10]

Core Viewpoint - Analyst recommendations play a significant role in influencing stock prices, but their reliability is questionable, particularly for Veeva Systems (VEEV) [1][5][10]. Brokerage Recommendations - Veeva has an average brokerage recommendation (ABR) of 1.97, indicating a position between Strong Buy and Buy, based on 27 brokerage firms' recommendations [2][14]. - Out of the 27 recommendations, 14 are Strong Buy (51.9%) and 3 are Buy (11.1%) [2]. Limitations of Brokerage Recommendations - Solely relying on ABR for investment decisions may not be advisable, as studies indicate that brokerage recommendations often fail to guide investors effectively towards stocks with high price appreciation potential [5][10]. - Brokerage firms tend to exhibit a positive bias in their ratings due to vested interests, leading to a disproportionate number of Strong Buy recommendations compared to Strong Sell [6][10]. Zacks Rank as an Alternative - Zacks Rank, a proprietary stock rating tool, categorizes stocks from Strong Buy to Strong Sell and is based on earnings estimate revisions, which correlate strongly with near-term stock price movements [8][11]. - The Zacks Rank is more timely and reflects current business trends, unlike the ABR, which may not be up-to-date [12]. Current Earnings Estimates for Veeva - The Zacks Consensus Estimate for Veeva's current year earnings has increased by 0.6% to $7.64, indicating growing analyst optimism [13]. - This increase in earnings estimates has contributed to a Zacks Rank of 2 (Buy) for Veeva, suggesting that the ABR can serve as a useful guide for investors [14].

Core Insights - The Motley Fool aims to enhance the financial literacy and well-being of individuals by providing investment solutions and market analysis [1] Company Overview - Founded in 1993, The Motley Fool is a financial services company focused on making the world smarter, happier, and richer [1] - The company reaches millions of people monthly through various platforms, including premium investing solutions, free guidance, and market analysis on Fool.com [1] - The Motley Fool also produces top-rated podcasts and operates a non-profit organization, The Motley Fool Foundation [1]

Core Insights - Veeva Systems (VEEV) is strategically expanding its partnerships in 2025, enhancing its integration within the life sciences sector and driving growth [1][3][7] Partnerships and Collaborations - In June 2025, Veeva partnered with the Sarah Cannon Research Institute to implement its Clinical Platform at over 200 oncology research sites, validating its technology for cancer trials [1] - Astellas selected Veeva's Vault CRM as its global standard for commercial operations, including a version tailored for China [1] - Veeva collaborated with Zifo in January 2025 to facilitate the integration of lab quality data into Veeva LIMS, expediting system rollouts [1] - EVERSANA joined Veeva's partner program in April 2025 to co-develop generative AI tools for content creation and customer engagement [2] - Partnerships with DNAnexus and Accumulus Synergy have enhanced Veeva's regulatory capabilities, aiding pharma companies in managing global filings [2] Market Position and Performance - Veeva's partnerships are accelerating adoption, strengthening customer relationships, and creating new growth avenues in clinical research, AI engagement, and regulatory compliance [3] - VEEV shares have increased by 33.5% year-to-date, significantly outperforming the industry growth of 8.1% [6][7] Valuation and Earnings Estimates - Veeva trades at a forward price-to-sales ratio of 14.25, which is above the industry average [8] - The Zacks Consensus Estimate for VEEV's fiscal 2026 earnings suggests a 15.8% increase compared to the previous year [9] - Current earnings estimates for the upcoming quarters indicate a year-over-year growth of 17.28% for the current quarter and 15.76% for the current year [10]

Core Insights - Veeva Systems (VEEV) has experienced a stock increase of nearly 29% over the past three months, driven by strong Q1 fiscal 2026 earnings with revenues of $759 million, a 17% year-over-year increase, and a 46% adjusted operating margin, indicating efficient growth and profitability [1][8][12] - The company is on track to meet the Zacks Consensus Estimate of $3.09 billion in revenues for fiscal 2026, reinforcing confidence in its long-term growth trajectory [1] Growth Drivers - A significant portion of Veeva's growth is attributed to the rollout of its next-generation customer relationship management platform, Vault CRM, which has over 80 customers and is expected to more than double by the end of 2026 [2][9] - Veeva is preparing to launch new AI features aimed at enhancing productivity and streamlining workflows, including tools like the MLR Bot and CRM Bot [10] - The adoption of data and analytics tools such as Crossix and CRM Pulse is increasing, further solidifying Veeva's position as a trusted partner in the life sciences sector [11] Market Performance - Veeva Systems' shares have outperformed the Zacks Medical Market sector and industry peers, with a 29.5% increase over the past three months compared to 12.4% for Certara and 3.5% for IQVIA, while Health Catalyst shares have decreased by 1.7% [3][4] - The Zacks Medical Information System industry has improved by 12.3% during the same period, indicating Veeva's strong relative performance [4] Financial Projections - Veeva Systems is projected to achieve a sales growth of 12.7% in fiscal 2026 and 11.7% in fiscal 2027, with earnings per share expected to increase by 15.8% in fiscal 2026 and 8.9% in fiscal 2027, reflecting improved operational efficiency [12] Competitive Landscape - The life sciences industry is facing market saturation, which may limit Veeva's ability to maintain historical CRM sales growth rates as many large enterprises have already adopted CRM solutions [15][16] - Increased competition from traditional CRM providers and emerging AI-powered platforms poses additional challenges for Veeva Systems [15][16] Valuation Concerns - VEEV stock is currently trading at a forward price-to-sales (P/S) ratio of 14.1X, significantly higher than the industry average of 5.81X, suggesting that the stock may be overvalued [17]

Core Viewpoint - The article emphasizes the importance of fundamental analysis in identifying undervalued companies with long-term growth potential, advocating for a value investing approach that focuses on purchasing quality companies at a discount to their intrinsic value and holding them for extended periods to maximize earnings and shareholder returns. Group 1 - The investment strategy combines value investing principles with a focus on long-term growth [1] - The approach involves buying quality companies at a discount to their intrinsic value [1] - The goal is to allow companies to compound their earnings and shareholder returns over time [1]

Core Insights - Veeva Systems is launching Veeva AI, a generative AI layer integrated into its Vault platform to enhance automation and efficiency for life sciences companies [1][6] - The integration of AI aims to improve productivity and decision-making in clinical, quality, and regulatory functions, thereby increasing customer reliance on Veeva's software [2][6] - Veeva is experiencing steady financial performance and geographic expansion, particularly in China, positioning itself as a key technology provider as life sciences firms adopt AI [2] Competitive Landscape - IQVIA Holdings is also investing in AI, utilizing its Orchestrated Clinical Trials platform to enhance trial planning and patient recruitment, showcasing a different approach by combining data, analytics, and services [3] - Schrodinger Inc. is leveraging AI in drug discovery, focusing on deep learning and molecular simulation to optimize drug compounds, thus complementing Veeva's offerings in the life sciences ecosystem [4] Financial Performance - Veeva's shares have increased by 34.6% year-to-date, outperforming the industry growth of 22.5% [5][6] - The company has a forward price-to-sales ratio of 14.25, which is above the industry average, indicating a premium valuation [8] - The Zacks Consensus Estimate predicts a 15.8% rise in Veeva's fiscal 2026 earnings compared to the previous year [9]

Core Viewpoint - The healthcare sector is highlighted as a critical area in the stock market, driven by the need for innovative therapies and medical technologies to address an aging population and rising chronic diseases. There are ten under-the-radar healthcare stocks identified as potential investment opportunities. Group 1: Company Highlights - **Certara**: Positioned to benefit from AI-driven transformations in medicine, providing bio-simulation software that accelerates drug development, with over 90% of novel drugs approved by the FDA since 2014 utilizing its technology [3][4]. - **Beam Therapeutics**: A clinical-stage biotech focusing on precision gene editing therapies for genetic diseases, with its lead candidate in phase 1/2 trials for sickle cell disease, showing promise for long-term growth [5][6]. - **Inspire Medical Systems**: Develops implantable devices for obstructive sleep apnea, reporting a 23% year-over-year revenue increase to $201 million, indicating strong market demand [8]. - **Insulet**: Specializes in tubeless insulin pump technology, targeting a revenue growth of 19% to 22% by 2025, with significant expansion opportunities in international markets [9]. - **Krystal Biotech**: Focuses on rare skin diseases, with its gene therapy expected to generate approximately $400 million in revenue this year, reinforcing its market position [10]. - **LifeMD**: Operates a telehealth platform with a 49% year-over-year revenue increase, driven by a partnership with Novo Nordisk, indicating potential for further growth [11]. - **Option Care Health**: Leading provider of home infusion services, positioned to benefit from the shift towards personalized healthcare [12]. - **Tempus AI**: Utilizes AI for precision medicine, projecting over 80% revenue growth this year to about $1.3 billion, highlighting its expansive data ecosystem [13]. - **TransMedics Group**: Innovates in organ transplantation with its FDA-approved Organ Care System, projecting a 30% revenue growth this year [14][15]. - **Veeva Systems**: Offers cloud-based software for life sciences, serving over 1,000 customers and positioned to capitalize on the industry's digital transformation [16].

Core Viewpoint - Veeva Systems has experienced a slight increase in share price of approximately 0.8% since the last earnings report, which is underperforming compared to the S&P 500 [1] Group 1: Earnings Report and Market Reaction - The recent earnings report indicates that estimates for Veeva have trended upward, with a consensus estimate shift of 7.84% [2] - Investors and analysts are closely monitoring the stock's performance leading up to the next earnings release to determine if the positive trend will continue or if a pullback is imminent [1] Group 2: VGM Scores and Investment Strategy - Veeva has received a strong Growth Score of A and a similar score for momentum, but a lower grade of D for value, placing it in the bottom 40% for that investment strategy [3] - The overall aggregate VGM Score for Veeva is B, which is relevant for investors not focused on a single strategy [3] Group 3: Future Outlook - The upward trend in estimates and the magnitude of revisions suggest a promising outlook for Veeva, leading to a Zacks Rank of 1 (Strong Buy) [4] - An above-average return is expected from the stock in the upcoming months [4]

Core Viewpoint - Veeva Systems (VEEV) has received an upgrade to a Zacks Rank 1 (Strong Buy) due to an upward trend in earnings estimates, indicating a positive outlook for the company's stock price [1][4]. Earnings Estimates and Ratings - The Zacks rating system is primarily based on a company's changing earnings picture, specifically the Zacks Consensus Estimate for EPS from sell-side analysts [2]. - A strong correlation exists between changes in earnings estimates and near-term stock price movements, making the Zacks rating system valuable for investors [3][5]. - The recent upgrade for Veeva reflects optimism about its earnings outlook, which could lead to increased buying pressure and a rise in stock price [4][6]. Performance of Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [8]. - The system maintains a balanced distribution of "buy" and "sell" ratings across over 4,000 stocks, ensuring that only the top 5% receive a "Strong Buy" rating [10]. Veeva's Earnings Estimate Revisions - For the fiscal year ending January 2026, Veeva is expected to earn $7.59 per share, unchanged from the previous year, but analysts have raised their estimates by 6.4% over the past three months [9]. Conclusion - The upgrade to Zacks Rank 1 places Veeva in the top 5% of stocks covered by Zacks in terms of estimate revisions, suggesting potential for market-beating returns in the near term [11].