2 life science software stocks to buy now
Increased investments in various segments of the life science industry and rapid technological integration make its long-term growth prospects promising. Thus, we believe that the increased need for clinical trial tracking and storage and data analysis should enable cloud-based life science software platforms IQVIA Holdings (IQV) and Veeva Systems (VEEV) to record strong short-term gains. Read on.
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Rapid technological integration into the life science industry has paved the way for revolutionary innovations in the discovery of drugs to treat critical diseases. Growing investments in the life sciences industry are expected to transform the healthcare industry in the coming years, facilitated by descriptive analytics and cloud-based software platforms.
The growing demand for these software platforms in the life sciences industry is driving companies to innovate and grow. And the global life science analysis software market is expected to grow by 12.4% CAGR until 2028.
Against this backdrop, we believe stocks of fundamentally strong life science software companies IQVIA Holdings Inc. (IQV) and Veeva Systems Inc. (VEEV) could generate significant returns in the short term.
Click here to view our Software Industry Report for 2021
IQVIA Holdings Inc. (IQV)
IQV provides advanced analytics, technology solutions and clinical research services to the life sciences industry. The Company based in Durham, North Carolina offers clinical development strategies, therapeutic expertise, predictive and prescriptive analyzes and patient retention services. It serves pharmaceutical, biotechnology, device and diagnostic and consumer health companies.
On November 19, IQV launched Grant and Funding Management, a new module within its Orchestrated Customer Engagement (OCE) solutions portfolio that provides life science companies with a solution to accelerate funding requests. , eliminate errors, monitor compliance, track payments, and demonstrate the impact of giving programs globally. With its advanced user interface (UI) and end-to-end automated workflows, this launch further broadened IQV’s reach in the engagement management space and helped improve the efficiency of the company.
On September 30, 2021, Polpharma Group BV, a leading pharmaceutical company in the field of Rx and OTC drugs, selected IQV’s Orchestrated Customer Engagement (OCE) platform as part of its 2021-2025 growth strategy to improve the productivity of its sales force through the automation of administrative and repetitive tasks thanks to its AI / ML capabilities and the rapid deployment of multi-channel digital marketing campaigns to customers in Central and Eastern Europe . IQV’s revenue increased 21.7% year-on-year to $ 3.39 billion for its fiscal third quarter, ended September 30, 2021. The company’s operating income was $ 302 million of dollars, indicating an increase of 61.5% over the period of the previous year. While its adjusted net income increased 33% year-over-year to $ 423 million, its adjusted net income increased 33.1% to $ 2.17. The company had $ 1.47 billion in Cash and cash equivalents until September 30, 2021.
Analysts expect the stock’s EPS to rise 38.8% year-on-year to $ 8.91 for the current year. A consensus estimate of revenue of $ 13.83 billion for the current year represents an increase of 21.7% over the period of the previous year. IQV has beaten Street’s EPS estimates in each of the past four quarters. The stock’s EPS is expected to grow at a rate of 22.1% per year over the next five years. The stock has gained 44.6% in progress since the start of the year.
IQV POWR odds reflect this promising outlook. The stock has an overall rating of B, which is equivalent to Buy in our proprietary rating system. POWR scores are calculated by considering 118 separate factors, each factor being weighted to an optimal degree.
The stock has an A rating for growth and a B rating for stability and sentiment. Click here to see the additional notes for IQV (Value, Momentum and Quality).
Of the 54 actions of Medical – Diagnosis / Research industry, IQV is ranked No. 9.
Veeva Systems Inc. (VEEV)
VEEV provides cloud-based software solutions for the global life science industry. The Pleasanton, California The company offers enterprise applications, multi-channel platforms, customer relations and content management solutions designed to meet the needs of its customers and their strategic business functions, from research and development (R&D) to marketing.
On November 18, VEEV showcased the messaging and content sharing capabilities compliant with Veeva CRM Engage Connect at its European event Veeva Commercial and Medical Summit Connect, which provides healthcare professionals with access to information and resources including they need by connecting with business and life science representatives. via the Veeva Engage app instantly. Providing these services efficiently and on demand is expected to generate high demand from healthcare professionals in the future.
On November 16, the Center for Breakthrough Medicines (CBM), an innovative contract development and manufacturing organization focused on cell and gene therapy, adopted VEEV’s Veeva Vault Quality Suite to modernize development, improve efficiency of manufacturing and increase collaboration between departments, suppliers and customers. VEEV looks forward to helping CDM build the world’s largest cell and gene therapy manufacturing and testing facility to enable the delivery of breakthrough treatments to patients for years to come.
For its fiscal second quarter, ended July 31, 2021, VEEV’s total revenue increased 28.8% year-on-year to $ 455.59 million. The company’s non-GAAP gross profit was $ 345.42 million, up 29.5% from the prior year period. Its non-GAAP operating profit was $ 191.59 million, an increase of 32.7% over the same period last year. VEEV’s non-GAAP net income was $ 125.67 million, marking a 31.2% year-over-year improvement. And its non-GAAP EPS rose 30.6% to $ 0.94. As of July 31, 2021, the company had $ 1.06 billion in cash and cash equivalents.
A consensus EPS estimate of $ 3.55 for the current year represents a 20.7% increase over the previous year period. VEEVE has beaten Street’s EPS estimates in each of the past four quarters. And analysts expect the stock’s earnings to rise 25.2% year-on-year to $ 1.83 billion for the current year. Analysts expect the stock’s EPS to grow at a rate of 17.9% per year over the next five years. The stock has gained 3.8% in progress since the start of the year.
VEEV’s strong fundamentals are reflected in its POWR ratings. The stock has an overall rating of B, which is equivalent to Buy in our proprietary rating system.
The stock has an A rating for quality and a B rating for growth and sentiment. Click here to see the additional notes for VEEV (Value, Momentum and Stability).
VEEV is ranked n Â° 18 out of 87 stocks in the Medical services industry.
Click here to view our 2021 Cloud Computing Industry Report
IQV stock was trading at $ 260.26 per share on Wednesday morning, up $ 1.13 (+ 0.44%). Year-to-date, IQV has gained 45.26%, compared to a 24.55% increase in the benchmark S&P 500 over the same period.
About the Author: Sweta Vijayan
Sweta is an investment analyst and journalist with a particular interest in researching market inefficiencies. She is passionate about educating investors so that they can be successful on the stock market.
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