Does Veeva Systems (VEEV) Have Attractive Long-Term Outlook?
Conestoga Capital Advisors, an asset management company, released its “Mid-Cap Strategy” second-quarter 2024 investor letter. A copy of the letter can be downloaded here. The second quarter of 2024 may be regarded as a time of moderation. Economic indicators largely reflected slowing growth and easing inflation. The moderation theme also drives equity markets. Large-cap stocks, as measured by the S&P 500, rose 3.9% in the second quarter, however, small-cap stocks lagged again, with the Russell 2000 Index declining -3.3% and the Russell 2000 Growth Index declining -2.9%. The Mid Cap Strategy declined -4.22% net-of-fees in the quarter compared to a -3.21% return for the Russell Mid Cap Growth Index. Sector allocation effects were slightly positive, while stock selection effects detracted from relative returns. Higher-quality companies benefited from stylistic factors, which helped to boost relative returns. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Conestoga Capital Advisors highlighted stocks like Veeva Systems Inc. (NYSE:VEEV), in the second quarter 2024 investor letter. Veeva Systems Inc. (NYSE:VEEV) offers cloud-based software for the life sciences industry. The one-month return of Veeva Systems Inc. (NYSE:VEEV) was 2.94%, and its shares gained 2.36% of their value over the last 52 weeks. On August 16, 2024, Veeva Systems Inc. (NYSE:VEEV) stock closed at $192.50 per share with a market capitalization of $31.118 billion.
Conestoga Capital Advisors stated the following regarding Veeva Systems Inc. (NYSE:VEEV) in its Q2 2024 investor letter:
"Veeva Systems Inc. (NYSE:VEEV): VEEV is a vertical SaaS company for the life sciences industry with a wide range of integrated cloud-based software applications and services. VEEV posted a beat in 1Q24 but lowered revenue, billings and cash flow guidance for the full year 2024. The company is seeing a divergence in trends by business segment. VEEV increased Commercial Solutions subscription revenue by 1%. On the other hand, guidance for R&D was reduced by 1.5% due to weakness in SMB and deal timing in enterprise. Despite these shorter-term challenges, we believe the company’s long-term outlook remains attractive and maintain the holding in our Mid Cap portfolios."
A team of IT experts monitoring a network of computers managing the medical content and communications.
Veeva Systems Inc. (NYSE:VEEV) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 50 hedge fund portfolios held Veeva Systems Inc. (NYSE:VEEV) at the end of the second quarter which was 46 in the previous quarter. The first quarter revenue of Veeva Systems Inc. (NYSE:VEEV) was $650 million with non-GAAP operating income of $261 million. While we acknowledge the potential of Veeva Systems Inc. (NYSE:VEEV) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
Ensemble Capital Management, another investment management company, established a position in Veeva Systems Inc. (NYSE:VEEV) during Q2 2024. Veeva Systems Inc. (NYSE:VEEV) was listed among the Conestoga Capital Advisors' top contributors in Q1 2024. In addition, please check out our hedge fund investor letters Q2 2024 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.