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Synopsys (SNPS) Dips More Than Broader Markets: What You Should Know
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Synopsys (SNPS - Free Report) closed the most recent trading day at $372.07, moving -0.59% from the previous trading session. This change lagged the S&P 500's daily loss of 0.12%. At the same time, the Dow added 0.09%, and the tech-heavy Nasdaq gained 0.4%.
Heading into today, shares of the maker of software used to test and develop chips had gained 17.87% over the past month, outpacing the Computer and Technology sector's gain of 10.34% and the S&P 500's gain of 8.25% in that time.
Wall Street will be looking for positivity from Synopsys as it approaches its next earnings report date. This is expected to be August 17, 2022. In that report, analysts expect Synopsys to post earnings of $2.04 per share. This would mark year-over-year growth of 12.71%. Meanwhile, our latest consensus estimate is calling for revenue of $1.22 billion, up 15.64% from the prior-year quarter.
SNPS's full-year Zacks Consensus Estimates are calling for earnings of $8.67 per share and revenue of $4.96 billion. These results would represent year-over-year changes of +26.75% and +17.92%, respectively.
Investors might also notice recent changes to analyst estimates for Synopsys. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Synopsys is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Synopsys has a Forward P/E ratio of 43.19 right now. This represents a premium compared to its industry's average Forward P/E of 30.84.
Also, we should mention that SNPS has a PEG ratio of 2.21. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. SNPS's industry had an average PEG ratio of 2.21 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 164, putting it in the bottom 35% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow SNPS in the coming trading sessions, be sure to utilize Zacks.com.
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Synopsys (SNPS) Dips More Than Broader Markets: What You Should Know
Synopsys (SNPS - Free Report) closed the most recent trading day at $372.07, moving -0.59% from the previous trading session. This change lagged the S&P 500's daily loss of 0.12%. At the same time, the Dow added 0.09%, and the tech-heavy Nasdaq gained 0.4%.
Heading into today, shares of the maker of software used to test and develop chips had gained 17.87% over the past month, outpacing the Computer and Technology sector's gain of 10.34% and the S&P 500's gain of 8.25% in that time.
Wall Street will be looking for positivity from Synopsys as it approaches its next earnings report date. This is expected to be August 17, 2022. In that report, analysts expect Synopsys to post earnings of $2.04 per share. This would mark year-over-year growth of 12.71%. Meanwhile, our latest consensus estimate is calling for revenue of $1.22 billion, up 15.64% from the prior-year quarter.
SNPS's full-year Zacks Consensus Estimates are calling for earnings of $8.67 per share and revenue of $4.96 billion. These results would represent year-over-year changes of +26.75% and +17.92%, respectively.
Investors might also notice recent changes to analyst estimates for Synopsys. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Synopsys is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Synopsys has a Forward P/E ratio of 43.19 right now. This represents a premium compared to its industry's average Forward P/E of 30.84.
Also, we should mention that SNPS has a PEG ratio of 2.21. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. SNPS's industry had an average PEG ratio of 2.21 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 164, putting it in the bottom 35% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow SNPS in the coming trading sessions, be sure to utilize Zacks.com.