Trade-Ideas LLC identified

Veeva Systems

(

VEEV

) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Veeva Systems as such a stock due to the following factors:

  • VEEV has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $30.5 million.
  • VEEV has traded 221,716 shares today.
  • VEEV is trading at 2.74 times the normal volume for the stock at this time of day.
  • VEEV is trading at a new low 3.03% below yesterday's close.

'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize (or avoid losses by trimming weak positions). In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on VEEV:

TheStreet Recommends

Veeva Systems Inc. provides cloud-based software solutions for the life sciences industry in North America, Europe, the Asia Pacific, and Latin America. VEEV has a PE ratio of 73. Currently there are 7 analysts that rate Veeva Systems a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Veeva Systems has been 993,800 shares per day over the past 30 days. Veeva Systems has a market cap of $1.7 billion and is part of the technology sector and computer software & services industry. Shares are up 0.1% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Veeva Systems as a

sell

. Among the areas we feel are negative, one of the most important has been weak operating cash flow.

Highlights from the ratings report include:

  • Net operating cash flow has declined marginally to $15.18 million or 8.58% when compared to the same quarter last year. Despite a decrease in cash flow VEEVA SYSTEMS INC is still fairing well by exceeding its industry average cash flow growth rate of -22.77%.
  • After a year of stock price fluctuations, the net result is that VEEV's price has not changed very much. Although its weak earnings growth may have played a role in this flat result, don't lose sight of the fact that the performance of the overall market, as measured by the S&P 500 Index, was essentially similar. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Health Care Technology industry average, but is greater than that of the S&P 500. The net income increased by 40.0% when compared to the same quarter one year prior, rising from $9.58 million to $13.41 million.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Health Care Technology industry and the overall market on the basis of return on equity, VEEVA SYSTEMS INC has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
  • The gross profit margin for VEEVA SYSTEMS INC is rather high; currently it is at 67.25%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 13.66% is above that of the industry average.

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