Is Veeva Systems (VEEV) a Smart Long-term Buy?

Brown Capital Management Small Company Fund recently released its Q3 2020 Investor Letter, a copy of which you can download here. The fund posted a return of 5.35% (instl. class) for the quarter, underperforming its benchmark, the Russell 2,000 Growth Index which returned 7.16% in the same quarter. You should check out Brown Capital Management’s top 5 stock picks for investors to buy right now, which could be the biggest winners of 2021.

In the Q3 2020 Investor Letter, Brown Capital Management highlighted a few stocks and Veeva Systems Inc (NYSE:VEEV) is one of them. Veeva Systems Inc (NYSE:VEEV) is a computer software company. Year-to-date, Veeva Systems Inc (NYSE:VEEV) stock gained 91.3% and on December 15th it had a closing price of $269.09. Here is what Brown Capital Management said:

“Veeva Systems provides cloud-based software to the global life-sciences industry. Veeva’s modern Customer Relationship Management (CRM) solution offers greater functionality and integration than competitors’, and has a dominant market position in the pharmaceutical market. Veeva Vault is an openended content management and collaboration platform on which the company has launched multiple successful products for the clinical side of life-sciences companies. These include eTMF (electronic Trial Master File), CTMS (Clinical Trial Management System), CDMS (Clinical Data Management System), regulatory, quality and safety-management solutions, all of which have significantly expanded the company’s market opportunity over time. Finally, Veeva has begun to sell solutions outside of life sciences in recent years, further growing its target market. Going forward, we see a large opportunity for cross-selling, continued innovation and market expansion.

During the quarter, Veeva again delivered strong revenue growth and cash-flow generation, with little impact from COVID-19-related shutdowns. The company’s customers, who are mostly in the life-sciences vertical, have been relatively unscathed in recent months, and continue to expand their use of Veeva products. The company’s outperformance during the quarter was likely driven by strong execution and growth, enhancing its position as a best-of-breed software company.”

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In Q2 2020, the number of bullish hedge fund positions on Veeva Systems Inc (NYSE:VEEV) stock increased by about 6% from the previous quarter (see the chart here), so a number of other hedge fund managers believe in Veeva’s growth potential. Our calculations showed that Veeva Systems Inc (NYSE:VEEV) isn’t ranked among the 30 most popular stocks among hedge funds.

The top 10 stocks among hedge funds returned 216% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 121 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

Video: Top 5 Stocks Among Hedge Funds

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Disclosure: None. This article is originally published at Insider Monkey.