Big Money Returns to Veeva Systems

And the cloud software provider focused on the life sciences industry could rise even more due to strong growth and healthy profits. But another likely reason is Big Money lifting the stock.

Veeva Systems Attracts Big Money

So, what’s Big Money? Said simply, that’s when a stock goes up in price alongside chunky volumes. It’s indicative of institutions betting on the shares.

Smart money managers are always looking for the next hot stock. And Veeva Systems has many fundamental qualities that are attractive.

This sets up well for the stock going forward. But how the shares have been trading points to more upside. As I’ll show you, the Big Money has been consistent in the shares.

You see, fund managers are always looking to bet on the next outlier stocks…the best in class. They spend countless hours sizing up companies, reading reports, speaking to analysts…you name it. When they find a company firing on all cylinders, they pounce in a big way.

That’s why I’ve learned how critical it is to gauge Big Money demand for shares. To show you what I mean, check out how the last few weeks have seen Big Money activity. It’s been a long slide down, but there may be a turnaround ahead. The green bar signals big trading volumes as the stock ramped in price:

Source: www.mapsignals.com

In the last year, the stock attracted a new Big Money buy signal, after receiving them regularly for years. Generally speaking, recent green bars could mean more upside is ahead.

Now, let’s check out technical action grabbing my attention:

• 1-month outperformance vs. Health Care Select Sector SPDR ETF (+8.0% vs. XLV)

Outperformance is important for leading stocks.

Veeva Systems Fundamental Analysis

Next, it’s a good idea to check under the hood. Meaning, I want to make sure the fundamental story is strong too. As you can see, Veeva Systems has been growing sales and earnings at double-digit rates, while also owning a strong profit margin. Take a look:

• 3-year sales growth rate (+29.0%)
• 3-year EPS growth rate (+20.7%)
• Profit margin (+23.1%)

Source: FactSet

Marrying great fundamentals with technically superior stocks is a winning recipe over the long-term.

In fact, VEEV has been a top-rated stock at my research firm, MAPsignals, for years. That means the stock has buy pressure, strong technicals, and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

VEEV has a lot of qualities that are attracting Big Money. It’s made the Top 20 report 45 times since 2015, with its first appearance on 11/01/2015…and gaining 640.4% since. Big Money was all over the shares years ago and it’s recently come back in; the blue bars below show when Veeva Systems was a top pick:

Source: www.mapsignals.com

It’s been a top stock in the health care sector according to the MAPsignals process. I wouldn’t be surprised if VEEV makes additional appearances in the years to come. Let’s tie this all together.

Veeva Systems Price Prediction

The Veeva Systems rally could have further to go. Big Money buying in the shares is signaling to take notice. Shares could be positioned for further upside. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author holds no positions in VEEV at the time of publication.

Learn more about the MAPsignals process here.

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