Veeva Systems Stock Drop Looks Sharp, But How Deep Can It Go?
Veeva Systems (VEEV) stock is down 16.8% in 5 trading days. The recent slide reflects renewed concerns around slowing growth in its Vault CRM segment and lower-than-expected retention of top pharma clients, but sharp drops like this often raise a tougher question: is the weakness temporary, or a sign of deeper cracks in the story?
Before judging its downturn reslience, let’s look at where Veeva Systems stands today.
- Size: Veeva Systems is a $40 Bil company with $3.0 Bil in revenue currently trading at $244.06.
- Fundamentals: Last 12 month revenue growth of 15.3% and operating margin of 26.9%.
- Liquidity: Has Debt to Equity ratio of 0.0 and Cash to Assets ratio of 0.8
- Valuation: Veeva Systems stock is currently trading at P/E multiple of 49.3 and P/EBIT multiple of 49.9
- 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.
These metrics point to a Strong operational performance, alongside Very High valuation – making the stock Relatively Expensive. For details, see Buy or Sell VEEV Stock
That brings us to the key consideration for investors worried about this fall: how resilient is VEEV stock if markets turn south? This is where our downturn resilience framework comes in. Suppose VEEV stock falls another 20-30% to $171 – can investors comfortably hold on? Turns out, the stock saw an impact slightly better than the S&P 500 index during various economic downturns, based on (a) how much the stock fell and, (b) how quickly it recovered. Below, we dive deeper into each such downturn.
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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 $306.22 on 7 October 2025 , and currently trades at $244.06
| VEEV | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -55.7% | -25.4% |
| Time to Full Recovery | Not Fully Recovered | 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 |
Feeling jittery about VEEV stock? Consider portfolio approach.
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Individual stocks can soar or tank but one thing matters: staying invested. The right portfolio can help you stay invested, capture upside and mitigate the downside associated with any individual stock.
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.