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Synopsys (SNPS) Outpaces Stock Market Gains: What You Should Know
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Synopsys (SNPS - Free Report) closed the most recent trading day at $435.41, moving +1.76% from the previous trading session. This move outpaced the S&P 500's daily gain of 1.23%. Elsewhere, the Dow gained 0.84%, while the tech-heavy Nasdaq lost 2.24%.
Heading into today, shares of the maker of software used to test and develop chips had lost 5.86% over the past month, lagging the Computer and Technology sector's gain of 3.32% and the S&P 500's gain of 4.67% in that time.
Synopsys will be looking to display strength as it nears its next earnings release. In that report, analysts expect Synopsys to post earnings of $2.73 per share. This would mark year-over-year growth of 30%. Meanwhile, our latest consensus estimate is calling for revenue of $1.48 billion, up 18.66% from the prior-year quarter.
SNPS's full-year Zacks Consensus Estimates are calling for earnings of $10.82 per share and revenue of $5.81 billion. These results would represent year-over-year changes of +21.57% and +14.34%, respectively.
Investors might also notice recent changes to analyst estimates for Synopsys. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.19% higher. Synopsys currently has a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that Synopsys has a Forward P/E ratio of 39.56 right now. This valuation marks a premium compared to its industry's average Forward P/E of 27.52.
Also, we should mention that SNPS has a PEG ratio of 2.53. 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. Computer - Software stocks are, on average, holding a PEG ratio of 2.34 based on yesterday's closing prices.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 90, putting it in the top 36% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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) Outpaces Stock Market Gains: What You Should Know
Synopsys (SNPS - Free Report) closed the most recent trading day at $435.41, moving +1.76% from the previous trading session. This move outpaced the S&P 500's daily gain of 1.23%. Elsewhere, the Dow gained 0.84%, while the tech-heavy Nasdaq lost 2.24%.
Heading into today, shares of the maker of software used to test and develop chips had lost 5.86% over the past month, lagging the Computer and Technology sector's gain of 3.32% and the S&P 500's gain of 4.67% in that time.
Synopsys will be looking to display strength as it nears its next earnings release. In that report, analysts expect Synopsys to post earnings of $2.73 per share. This would mark year-over-year growth of 30%. Meanwhile, our latest consensus estimate is calling for revenue of $1.48 billion, up 18.66% from the prior-year quarter.
SNPS's full-year Zacks Consensus Estimates are calling for earnings of $10.82 per share and revenue of $5.81 billion. These results would represent year-over-year changes of +21.57% and +14.34%, respectively.
Investors might also notice recent changes to analyst estimates for Synopsys. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.19% higher. Synopsys currently has a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that Synopsys has a Forward P/E ratio of 39.56 right now. This valuation marks a premium compared to its industry's average Forward P/E of 27.52.
Also, we should mention that SNPS has a PEG ratio of 2.53. 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. Computer - Software stocks are, on average, holding a PEG ratio of 2.34 based on yesterday's closing prices.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 90, putting it in the top 36% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.