Renowned market commentator Jim Cramer has advised investors to steer clear of Veeva Systems (VEEV), citing concerns over valuation and near-term growth sustainability. The call comes amid heightened scrutiny of healthcare IT stocks following recent macroeconomic pressures.
- VEEV’s forward P/E ratio stands at 48, well above the S&P 500 average of 22
- Revenue growth forecast for FY2026 is 12–14%, down from 18% in FY2024
- Cramer’s warning follows a 22% decline in VEEV’s share price since October 2025
- Healthcare IT sector has underperformed the broader tech index by 8.3% YTD
- Institutional ownership dropped to 73% in Q3 2025, the lowest in two years
- Cramer emphasized risks from rising interest rates and slower enterprise software spending
Jim Cramer, a prominent voice in U.S. financial media, has issued a cautionary stance toward Veeva Systems (VEEV), urging investors to 'stay away' from the stock. The recommendation marks a notable shift from prior endorsements and reflects growing skepticism around high-growth software plays in the life sciences sector. Cramer highlighted VEEV’s current price-to-earnings ratio of approximately 48x forward earnings, which he described as excessive given modest revenue growth projections of 12% to 14% for the next fiscal year.