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(This is The Best Stocks in the Market , brought to you by Josh Brown and Sean Russo of Ritholtz Wealth Management.) Josh — Today we’re going to talk about a name that’s been on the Best Stocks list since breaking out in May. It’s spent the entire summer consolidating a very large gap higher but the stock has refused to back off. It quite literally demands our attention. We’re bringing it to you now to tell you the story before another breakout out of this consolidation, which looks to be imminent. As Sean will explain, Veeva Systems is rapidly becoming the Salesforce of drug discovery. Anytime you hear a biotech or pharma company speaking enthusiastically about the AI opportunity to speed up drug trials and clinical approval, it’s likely they’re talking about utilizing the Veeva Vault CRM product. We’ll give you the fundamental story first, then we’ll dive into the chart. Best Stock Spotlight: Veeva Systems, Inc. (VEEV) On the list since: 5/29/2025 One-year price chart: Sean — Artificial intelligence has the potential to transform healthcare by accelerating drug discovery, streamlining clinical trials, and improving patient workflows, but it requires large amounts of high-quality data to deliver anything meaningful. Investors are warming up to that opportunity: healthcare stocks just posted their best two-day performance since November 2020, with the sector ETF (XLV) rallying nearly 5.6% over the past two days. VEEV is making progress there. Veeva enables pharmaceutical, biotech, and medical device companies to manage critical data and processes across the drug development and commercialization lifecycle. The Veeva Vault and Veeva CRM help companies securely handle clinical trial information, regulatory compliance, and healthcare provider interactions in ways that are both efficient and industry compliant. Veeva has been on a remarkable growth trajectory since 2020. Net income more than doubled from $301.1 million in FY2020 to $714.1 million in FY2025, which works out to about a 19% compound annual growth rate. EPS followed the same trend, climbing from $2.04 to $4.41 over that period. Not every year was smooth, though. Operating margins fell to 18.2% in FY2024 from 21.3% in 2023 and 27.3% in 2022. The margin squeeze came from heavy investment in Veeva’s Vault CRM migration and ongoing product development. Veeva’s original CRM product was built on Salesforce’s platform under an OEM (Original Equipment Manufacturer) agreement. This agreement severely restricted what Veeva could develop. Veeva resolved this by migrating from the Salesforce platform to its own Vault platform, hence the receding margin. However, things bounced back quickly in FY2025 after the Vault CRM was live. Net income jumped nearly 36% to $714.1 million, up from $525.7 million in FY2024. Operating margins recovered strongly as well, reaching 25.2%, making FY2025 Veeva’s most profitable year in absolute dollar terms since 2020. That momentum has carried into FY2026 with Veeva delivering its highest quarterly net income ever at $228.2 million. The chart below shows VEEV price and TTM net income: Looking forward, the company is still investing in and growing its business. Two top 20 biopharmas successfully went live with Vault CRM in major markets during Q2 FY26; in September of this year, both Bristol Myers Squibb and Gilead announced their commitments to Veeva’s Vault CRM. The Vault CRM provides compliant multichannel engagement, AI agents that assist reps in real time, and integration with Veeva’s broader suite of data and content tools. Veeva is quickly becoming the standard in healthcare tech. CEO Peter Gassner explained that Veeva is “increasing market share” while also “increasing our product footprint.” He noted growth is coming from multiple areas: “two axes, both market share and product footprint.” According to Finviz, the company expects to have grown earnings 18% this year and expects 8% EPS growth next year while trading at a forward 34x PE. Risk management Josh — Veeva Systems has been trading below record highs in a tightly wound range after a big gap higher in early summer. The $300 level has been overhead resistance this year with an all-time high in the 340’s looming off in the distance. I would consider getting long here and adding on a material, high-volume break above the $300 level if and when it comes. To me, that could be the trigger for the next leg higher. There’s no guarantee, of course, that this level will be achieved, so we need to think about a scenario where the current range breaks to the downside. I would use $265 as a stop – that’s the level the stock bottomed at in September and, not coincidentally, it’s also the bottom of the early summer gap. If the stock fails at $265 and gets back into the gap, it would be a good time to step away and reevaluate the position. DISCLOSURES: (None) All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL’S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. INVESTING INVOLVES RISK. EXAMPLES OF ANALYSIS CONTAINED IN THIS ARTICLE ARE ONLY EXAMPLES. THE VIEWS AND OPINIONS EXPRESSED ARE THOSE OF THE CONTRIBUTORS AND DO NOT NECESSARILY REFLECT THE OFFICIAL POLICY OR POSITION OF RITHOLTZ WEALTH MANAGEMENT, LLC. JOSH BROWN IS THE CEO OF RITHOLTZ WEALTH MANAGEMENT AND MAY MAINTAIN A SECURITY POSITION IN THE SECURITIES DISCUSSED. ASSUMPTIONS MADE WITHIN THE ANALYSIS ARE NOT REFLECTIVE OF THE POSITION OF RITHOLTZ WEALTH MANAGEMENT, LLC” TO THE END OF OR OUR DISCLOSURE. Click here for the full disclaimer.
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