With the S&P 500 recently hitting a brand-new high, debates about whether we are in a bull market are officially over. We are. Technically, this bull run started more than a year ago when the index hit its most recent low.

It's anyone's guess how much longer this bull market will last, but whatever the answer is, it's a good idea to invest in stocks that are likely to perform well beyond it. Veeva Systems (VEEV 0.08%) is one such stock. Let's consider why this growth stock is an excellent investment for the next decade.

Veeva Systems' latest financial results

Veeva Systems offers cloud-based tools to life science companies. The importance of Veeva's services for its clients can hardly be overstated. The life sciences industry is heavily regulated. Drugmakers take years to get from proof of concept to the final regulatory approval that allows them to launch their products. Veeva offers the tools to keep track of valuable data and comply with regulations. The company has become one of the leaders in this small niche of the massive cloud computing industry.

Like many other cloud providers, Veeva's financial results suffered a bit last year although the company managed the storm relatively well. In its latest reporting period -- the third quarter of its fiscal year 2024, ending on Oct. 31, 2023 -- Veeva's revenue of $616.5 million increased by about 12% year over year. The company's net income of $135.2 million jumped by almost 25% compared to the year-ago period.

Veeva's business remains a high-margin one. In the period, it reported a gross margin of 72.8%, slightly higher than the 72.1% reported in the parallel period of the previous fiscal year.

A solid moat and plenty of growth fuel

One thing that makes Veeva Systems' business solid is that it benefits from a competitive advantage, namely switching costs. Life science companies on Veeva's client list depend on its services for their day-to-day operations. Since switching to another cloud provider can pose problems (potential loss of data leading to failure to comply with regulations is just one example), most of them are likely to remain put.

Furthermore, Veeva has arguably developed a reputation as the leader in this market, which matters quite a bit. Corporations looking for cloud services have plenty of choices, but life science companies looking for cloud solutions tailor-made for the particularities of their industries have fewer options, and Veeva is one of the best. Since the business of developing new drugs or medical devices won't go out of style anytime soon -- quite the opposite, actually -- Veeva Systems' services will be in even higher demand.

The biopharmaceutical and medical device industries are worth more than $2 trillion combined, and growing. Veeva Systems sees a total addressable market (TAM) of more than $20 billion, where it is only 12% penetrated. Consider the company's trailing 12-month revenue of $2.3 billion. If it can reach a 50% penetration in its TAM in the next 10 years -- that is, generate $10 billion in revenue -- its top line will clock in a compound annual growth rate of 15.8% through this period.

There will also remain plenty of runway for the cloud expert to continue expanding its revenue. The bottom line is that thanks to an incredibly valuable business, a strong moat, and vast growth opportunities, Veeva Systems could deliver superior returns in the next decade and beyond. The current bull market won't last that long, but that won't matter to investors who put their money in this stock.