What happened
Shares of Veeva Systems (VEEV +0.14%) declined 16.1% in October, according to data from S&P Global Market Intelligence. They're up 2.5% in November through Friday, and have gained 69.3% so far in 2018.
Veeva provides cloud-based software solutions primarily for the life sciences industry.
For context, the S&P 500 fell 6.8% last month, has returned 2.7% this month, and has returned 5.4% so far this year, through Friday.
Image source: Getty Images.
So what
Veeva Systems didn't release any negative news last month, but it did receive some negative press: Wall Street firm Cannacord Genuity downgraded the stock from a buy to a hold rating on Oct. 1. Shares fell 3.4% that day, while the overall market was up slightly.
We can largely attribute Veeva Systems stock's subpar performance in October, however, to the general tough market conditions. The S&P 500 fell 6.8% and the tech-heavy Nasdaq dropped 9.2% in the month, with many highly valued, high-flying tech stocks suffering greater losses. The likely catalysts for investors dumping stocks were escalating U.S.-China tariffs and rising U.S. interest rates.
Now what
Investors should be getting some material news soon, as Veeva is scheduled to report its fiscal third-quarter 2019 earnings, for the period ended Oct. 31, after the market close on Wednesday, Nov. 28. For the quarter, management provided the following guidance: revenue of $215 million to $216 million, which, at the midpoint, translates to growth of 22% year over year; and adjusted earnings per share (EPS) of $0.38, which translates to growth of 52%.
Veeva Systems stock is worth putting on your watchlist if you don't already own it. The company is growing at a fast clip and still has plenty of growth opportunities within its core life sciences market and in other markets into which it's been expanding, such as cosmetics. Shares aren't cheap -- they're trading at 54.4 times projected forward earnings -- but that's usually par for the course for companies with potentially huge total addressable market sizes.
