The entity has a beta of 0.3555, which indicates possible diversification benefits within a given portfolio. Let's try to break down what Veeva's beta means in this case. As returns on the market increase, Veeva Systems returns are expected to increase less than the market. However, during the bear market, the loss on holding Veeva Systems will be expected to be smaller as well. Even though it is essential to pay attention to
Veeva Systems current price movements, it is always good to be careful when utilizing equity historical returns. Our philosophy towards measuring any stock's
future performance is to check both, its past performance charts as well as the business as a whole, including all available
technical indicators. Veeva Systems exposes twenty-one different technical indicators, which can help you to evaluate its performance.
Veeva Systems has an expected return of -0.05%. Please be advised to validate Veeva Systems
downside deviation,
jensen alpha, as well as the
relationship between the Jensen Alpha and
downside variance to decide if
Veeva Systems stock performance from the past will be repeated at some point in the near future.
There are currently many different techniques concerning forecasting the market as a whole as well as
predicting future values of individual securities such as Veeva Systems Class. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the
market sentiment and impact your forecasting results.
Predictive Modules for Veeva Systems
Sophisticated investors, who have witnessed
many market ups and downs, anticipate that the market will even out over time. This tendency of Veeva Systems' price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Veeva Systems. Your research has to be compared to or analyzed against Veeva Systems' peers to derive any actionable benefits. When done correctly, Veeva Systems' competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Veeva Systems Class.
How important is Veeva Systems's Liquidity
Veeva Systems
financial leverage refers to using borrowed capital as a funding source to finance Veeva Systems Class ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Veeva Systems financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Veeva Systems' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Veeva Systems' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Veeva Systems's total debt and its cash.
What is driving Veeva Systems Investor Appetite?
The small fall in market price for the last few months may raise some interest from sophisticated investors as it is trading at a share price of
276.87 on very low momentum in trading volume. The company executives did not add much value to Veeva Systems investors in
November. However, diversifying your holdings with Veeva Systems or similar stocks can still protect your portfolio during high-volatility market scenarios. The stock standard deviation of daily returns for 30 days investing horizon is currently 2.57. The current volatility is consistent with the ongoing market swings in
November 2020 as well as with Veeva Systems unsystematic, company-specific events.
Returns Breakdown
| Return on Investment | 29.69 |
| Return on Assets | 16.02 |
| Return on Equity | 24.66 |
| Return Capital | 0.34 |
| Return on Sales | 0.14 |
Veeva is expecting lower volatility in January
Latest Total Risk Alpha is up to -0.06. Price may fall again. Veeva Systems shows above-average downside volatility for the selected time horizon. We advise investors to inspect Veeva Systems further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Veeva Systems future alpha.
Our Conclusion on Veeva Systems
While some other firms within the health information services industry are still a little expensive, even after the recent corrections, Veeva Systems may offer a potential longer-term growth to sophisticated investors. To conclude, as of the 1st of December 2020, our analysis shows that Veeva Systems slowly supersedes the market. The venture is
overvalued and projects
close to average odds of financial distress for the next 2 years. Our overall 30 days buy-hold-sell advice on the venture is
Hold.
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Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Veeva Systems Class. Please refer to our
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