VEEV Dropped 7.2% In A Day. Have You Fully Evaluated The Risk?
Veeva Systems (VEEV) stock is down 7.2% in a day. The stock still looks expensive which, combined with history of only modest recovery post dips, suggests some risk. Consider the following data:
- Size: A $44 Bil company with $2.9 Bil in revenue currently trading at $272.33.
- Fundamentals: Last 12 month revenue growth of 14.8% and operating margin of 27.0%.
- Liquidity: Has Debt to Equity ratio of 0.0 and Cash to Assets ratio of 0.8
- Valuation: Currently trading at P/E multiple of 56.8 and P/EBIT multiple of 57.6
- Has one instance since 2010 where it dipped >30% in < 30 days and subsequently returned 3.8% within a year. See VEEV Dip Buy Analysis.
While we like to buy dips if the fundamentals check out – for VEEV, see Buy or Sell VEEV Stock – we are wary of falling knives. Specifically, it is worth trying to answer if things get really bad, and VEEV drops another 20-30% to $190.63 levels, will we be able to hold on to the stock? What is the worst case scenario? We call it downturn resilience.
Below is a deep dive into Veeva Systems (VEEV) downturn resilience – specifically, its performance vs the market during past crises? Turns out, the stock saw an impact slightly better than the S&P 500 index during various economic downturns. We assess this based on both (a) how much the stock fell and, (b) how quickly it recovered.
Below are the details, but before that, as a quick background: VEEV provides cloud-based software and professional services for life sciences, including implementation, deployment planning, project management, requirements analysis, solution design, and configuration globally.
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2022 Inflation Shock
- VEEV stock fell 55.7% from a high of $341.00 on 5 August 2021 to $151.10 on 14 October 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
- The stock is yet to recover to its pre-Crisis high
- The highest the stock has reached since then is $293.59 on 27 August 2025 , and currently trades at $272.33
| VEEV | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -55.7% | -25.4% |
| Time to Full Recovery | Not Fully Recovered days | 464 days |
2020 Covid Pandemic
- VEEV stock fell 26.7% from a high of $164.97 on 20 February 2020 to $120.93 on 16 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 14 April 2020
| VEEV | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -26.7% | -33.9% |
| Time to Full Recovery | 29 days | 148 days |
2018 Correction
- VEEV stock fell 26.5% from a high of $108.87 on 28 September 2018 to $80.01 on 24 December 2018 vs. a peak-to-trough decline of 19.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 25 January 2019
| VEEV | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -26.5% | -19.8% |
| Time to Full Recovery | 32 days | 120 days |
Worried that VEEV could fall much more? You could take a look at the Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.