Veeva Systems Inc. VEEV announced the expansion of Veeva Vault QMS yesterday. The expansion is expected to add new capabilities to manage MedTech field actions and product recalls.
The latest availability of expanded features is expected to significantly boost Veeva Systems’ Vault Quality suite and solidify its foothold in the niche space.
Likely Trend of VEEV Stock Following the News
Following the announcement on Sept. 24, 2024, shares of the company moved nearly 1.5% south to $207.91 at yesterday’s close.
Historically, the company has gained a high level of synergies from its partnerships and product launches. Although the latest product expansion is likely to be beneficial for VEEV’s top-line growth going forward, the stock plunged as it continued its downtrend since Friday.
Meanwhile, Veeva Systems currently has a market capitalization of $33.67 billion. It has an earnings yield of 3%, higher than the industry’s 1.9%. In the last reported quarter, VEEV delivered an earnings surprise of 5.9%.
Significance of the Expansion of Veeva Systems’ Vault QMS
Per Veeva Systems, the new features will likely enable oversight, timeliness and accuracy throughout the field action process, from issue identification through closure. Built as a fully integrated part of Vault QMS, field actions and recall management are seamlessly connected to adjacent quality processes, such as complaint handling and quality risk management, among others. This is expected to reduce the need for manual transcription or integration, thus improving timeliness and accuracy.
Veeva Systems’ management believes that by partnering with the industry to understand its needs, Veeva Vault QMS will likely deliver a streamlined way for MedTech companies to improve agility in a process that is crucial to product quality and patient safety.
Per an expert familiar with the use of Veeva Vault QMS, the launch of field actions and its seamless connections to related QMS elements will likely aid in streamlining processes, gaining efficiencies and improving customer service.
Industry Prospects in Favor of VEEV
Per a report by Allied Market Research, the global field service management market was valued at $5.2 billion in 2021 and is anticipated to reach $29.9 billion by 2031 at a CAGR of 19.2%. Factors like the rising need to keep track of activities taking place in the field and an increase in the adoption of automation and digitalization in the field services industry are likely to drive the market.
Given the market potential, the latest addition of new capabilities is expected to provide a significant boost to Veeva Systems’ business.
Veeva Systems’ Recent Developments
This month, Veeva Systems announced the newest release of Veeva Site Connect, adding powerful new capabilities and a streamlined site-centric experience to simplify and standardize sponsor-site collaboration. This marks a major step forward for clinical trial execution.
Last month, Veeva Systems announced the Veeva Vault CRM Service Center for inside sales, contact center and hybrid reps. Vault CRM Service Center is expected to support inbound and outbound engagement across channels and includes case management and video calls, among others. It also features Microsoft 365 integration, which drives productivity, including case collaboration in Microsoft Teams and OneNote, with all data captured in Vault CRM.
VEEV’s Share Price Performance
Shares of the company have gained 4.3% in the past year compared with the industry’s 45.1% rise and the S&P 500’s 33.8% growth.
Image Source: Zacks Investment Research
Veeva Systems’ Zacks Rank & Key Picks
Currently, VEEV carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space are DaVita Inc. DVA, Baxter International Inc. BAX and Boston Scientific Corporation BSX.
DaVita, flaunting a Zacks Rank #1 (Strong Buy) at present, has an estimated long-term growth rate of 17.5%. DVA’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 24.2%. You can see the complete list of today’s Zacks #1 Rank stocks here.
DaVita’s shares have gained 68.9% compared with the industry’s 32.4% rise in the past year.
Baxter, carrying a Zacks Rank of 2 (Buy) at present, has an estimated long-term growth rate of 10%. BAX’s earnings surpassed estimates in each of the trailing four quarters, with the average being 3.7%.
Baxter has gained 4.5% compared with the industry’s 23.5% rise in the past year.
Boston Scientific, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 12.6%. BSX’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 7.2%.
Boston Scientific’s shares have rallied 58.1% compared with the industry’s 23.5% rise in the past year.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Boston Scientific Corporation (BSX) : Free Stock Analysis Report
Baxter International Inc. (BAX) : Free Stock Analysis Report
DaVita Inc. (DVA) : Free Stock Analysis Report
Veeva Systems Inc. (VEEV) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
link
More Stories
Diagnostic errors affect patient safety in 7% of patients
AI Demonstrates Proficiency in Patient Safety Knowledge
AI may enhance patient safety, say researchers