VEEVA SYSTEMS INC-CLASS A (NYSE:VEEV) – A Strong Growth Stock with Technical Breakout Potential

VEEVA SYSTEMS INC-CLASS A (NYSE:VEEV) was identified by our screener as a strong growth stock with a favorable technical setup. The company combines solid fundamentals with a promising chart pattern, making it worth a closer look for growth-oriented investors.

Strong Growth Fundamentals

• Revenue & Earnings Growth: Over the past year, VEEV has delivered impressive revenue growth of 16.20% and earnings per share (EPS) growth of 36.57%. The company’s five-year average revenue growth stands at 19.99%, while EPS has grown at 24.72% annually.
• Profitability: With a 9/10 Profitability Rating, VEEV excels in margins—its operating margin of 25.36% and profit margin of 26.00% outperform 97% and 95% of industry peers, respectively.
• Financial Health: The company holds an 8/10 Health Rating, supported by strong liquidity (current ratio of 4.51) and no debt, reducing financial risk.

Technical Setup

• Bull Flag Pattern: VEEV is currently forming a bull flag, a continuation pattern that often follows a strong upward move. This suggests potential for further upside if the stock breaks resistance.
• Support Levels: Key support zones exist near $219.95 and $209.38, providing downside protection. Resistance lies between $236.78 and $240.61—a breakout above this range could signal a new upward leg.
• Market Performance: VEEV has outperformed 77% of its Health Care Technology peers over the past year and trades near the upper end of its 52-week range.

Valuation Considerations

While VEEV’s P/E ratio of 35.25 is above the S&P 500 average, it remains cheaper than 81% of its industry peers. The company’s strong growth prospects may justify its premium valuation.

For a deeper analysis, review the full fundamental report and technical report.

Our Strong Growth Stocks with Good Technical Setup screener lists more stocks meeting these criteria and is updated daily.

Disclaimer

This is not investing advice! The article highlights observations at the time of writing, but you should always conduct your own analysis before making investment decisions.