Why Veeva Systems Is a Top Pick for Investors in 2023
Veeva Systems (NYSE: VEEV) offers cloud-based software solutions worldwide for the life sciences industry. Its products help pharmaceutical, biotech, and medical device companies manage clinical trials, regulatory compliance, sales, and marketing. Many analysts generally consider the pharmaceutical industry resistant to a slow-growth economy, because the demand for healthcare products and services stays mostly the same in the face of changing economic conditions.
However, it turns out Veeva was far from immune to the economic uncertainty in 2022. Plagued by high inflation, rising interest rates, and the war in Ukraine, the stock dropped 37% during the year as investors were concerned over falling revenue growth and a shrinking operating margin.
The stock continued to disappoint in 2023 until the company delivered its fiscal 2024 first-quarter results on May 31, 2023. Veeva beat analysts' revenue and earnings expectations for the quarter and raised revenue and earnings guidance for the full fiscal year. The stock surged 20% immediately following the earnings release, and it's now up 24% year to date.
Source Fool.com
