Veeva Systems (NYSE:VEEV) is on a tear. VEEV stock is up nearly 100% in the past year and 61% year to date. My Portfolio Grader has it rated as an A, a strong buy, even at these levels. Why? Because it has found a niche to own that will pay off handsomely now and in years to come.

Allow me to explain.

First, you have a significant long-term issue in many industrialized nations.

Their population is getting older.

And in the U.S., you add to that the fact that a large proportion of people are overweight, which contributes to a variety of chronic diseases that only worsen as people get older.

On top of that, in the U.S., while few recognize it now, Gen Z — basically those born roughly between 1995 and 2015 — are a larger contingent than the baby boomers, the biggest generation so far to occupy the U.S.

Now add to this challenges with healthcare, not just in the U.S. but around the world.

In Europe, slow economies mean they have to find ways to preserve their popular single-payer systems.

In China, an enormous and expanding healthcare market, it’s about delivering healthcare to its 1.4 billion people in an efficient and cost-effective way. Until China can deliver private, public or some combination to its citizenry it will be hard for it to be considered a proper First World nation. And it’s working very hard on that status.

In the U.S., the healthcare system is outrageously expensive, and given the back an forth in Washington, there doesn’t seem to be a plan for making it more accessible and less costly.

The opportunity for healthcare firms — drug companies, medical equipment makers, biotechs, research firms, etc — is finding solutions that are effective and cost efficient that are also profitable.

What Veeva Systems provides is one of the most powerful solutions for these companies. VEEV stock specializes in a cloud-based platform designed specifically for life sciences companies. It’s like the Amazon Web Services (AWS) of the life sciences sector. And if you know anything about AWS, it’s probably the fact that it is the most powerful profit driver of all the companies.

What VEEV has built is already used by the biggest names in healthcare — drug companies, device makers, you name it. And that list continues to grow.

Remember, the life sciences space is surrounded by significant amounts of regulation around every step of the process to ensure safety and reliability. And all the research and testing needs to be kept accessible, yet secure. Whether it’s clinical use, regulatory, quality control, safety or medical, VEEV has built specialty cloud-based products to help.

Also bear in mind, while Amazon and Microsoft (NASDAQ:MSFT) have a significant amount of cloud business, many companies that are on their clouds are also seeing the value in back-up solutions and more focused solutions for their cloud services. And Veeva Systems is taking full advantage of that desire.

VEEV stock isn’t an integral part of a trend, it’s part of a megatrend.

— Louis Navellier

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Source: Investor Place