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Synopsys (SNPS) Gains As Market Dips: What You Should Know
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In the latest trading session, Synopsys (SNPS - Free Report) closed at $431.29, marking a +0.04% move from the previous day. This move outpaced the S&P 500's daily loss of 0.29%. At the same time, the Dow lost 0.55%, and the tech-heavy Nasdaq gained 1.24%.
Coming into today, shares of the maker of software used to test and develop chips had lost 1.5% in the past month. In that same time, the Computer and Technology sector gained 1.61%, while the S&P 500 gained 3.1%.
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, the Zacks Consensus Estimate for revenue is projecting net sales of $1.48 billion, up 18.66% from the year-ago period.
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 should also note any recent changes to analyst estimates for Synopsys. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Synopsys is currently a Zacks Rank #2 (Buy).
Looking at its valuation, Synopsys is holding a Forward P/E ratio of 39.86. For comparison, its industry has an average Forward P/E of 26.98, which means Synopsys is trading at a premium to the group.
We can also see that SNPS currently has a PEG ratio of 2.55. 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. The Computer - Software industry currently had an average PEG ratio of 2.31 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 104, which puts it in the top 42% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Synopsys (SNPS) Gains As Market Dips: What You Should Know
In the latest trading session, Synopsys (SNPS - Free Report) closed at $431.29, marking a +0.04% move from the previous day. This move outpaced the S&P 500's daily loss of 0.29%. At the same time, the Dow lost 0.55%, and the tech-heavy Nasdaq gained 1.24%.
Coming into today, shares of the maker of software used to test and develop chips had lost 1.5% in the past month. In that same time, the Computer and Technology sector gained 1.61%, while the S&P 500 gained 3.1%.
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, the Zacks Consensus Estimate for revenue is projecting net sales of $1.48 billion, up 18.66% from the year-ago period.
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 should also note any recent changes to analyst estimates for Synopsys. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Synopsys is currently a Zacks Rank #2 (Buy).
Looking at its valuation, Synopsys is holding a Forward P/E ratio of 39.86. For comparison, its industry has an average Forward P/E of 26.98, which means Synopsys is trading at a premium to the group.
We can also see that SNPS currently has a PEG ratio of 2.55. 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. The Computer - Software industry currently had an average PEG ratio of 2.31 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 104, which puts it in the top 42% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.