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Synopsys (SNPS) Dips More Than Broader Markets: What You Should Know
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Synopsys (SNPS - Free Report) closed at $378.77 in the latest trading session, marking a -0.44% move from the prior day. This change lagged the S&P 500's daily loss of 0.01%. Meanwhile, the Dow lost 0.23%, and the Nasdaq, a tech-heavy index, added 0.97%.
Coming into today, shares of the maker of software used to test and develop chips had gained 1.62% in the past month. In that same time, the Computer and Technology sector gained 4.02%, while the S&P 500 gained 6.23%.
Investors will be hoping for strength from Synopsys as it approaches its next earnings release. The company is expected to report EPS of $2.47, down 1.2% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.38 billion, up 7.73% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.57 per share and revenue of $5.8 billion. These totals would mark changes of +18.76% and +14.05%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Synopsys. Recent revisions tend to reflect the latest near-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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Synopsys currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Synopsys is holding a Forward P/E ratio of 36. For comparison, its industry has an average Forward P/E of 27.68, which means Synopsys is trading at a premium to the group.
We can also see that SNPS currently has a PEG ratio of 2.3. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. SNPS's industry had an average PEG ratio of 2.17 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 106, which puts it in the top 43% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Synopsys (SNPS) Dips More Than Broader Markets: What You Should Know
Synopsys (SNPS - Free Report) closed at $378.77 in the latest trading session, marking a -0.44% move from the prior day. This change lagged the S&P 500's daily loss of 0.01%. Meanwhile, the Dow lost 0.23%, and the Nasdaq, a tech-heavy index, added 0.97%.
Coming into today, shares of the maker of software used to test and develop chips had gained 1.62% in the past month. In that same time, the Computer and Technology sector gained 4.02%, while the S&P 500 gained 6.23%.
Investors will be hoping for strength from Synopsys as it approaches its next earnings release. The company is expected to report EPS of $2.47, down 1.2% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.38 billion, up 7.73% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.57 per share and revenue of $5.8 billion. These totals would mark changes of +18.76% and +14.05%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Synopsys. Recent revisions tend to reflect the latest near-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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Synopsys currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Synopsys is holding a Forward P/E ratio of 36. For comparison, its industry has an average Forward P/E of 27.68, which means Synopsys is trading at a premium to the group.
We can also see that SNPS currently has a PEG ratio of 2.3. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. SNPS's industry had an average PEG ratio of 2.17 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 106, which puts it in the top 43% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.