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Synopsys (SNPS) Advances But Underperforms Market: Key Facts
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In the latest market close, Synopsys (SNPS - Free Report) reached $468.03, with a +0.04% movement compared to the previous day. The stock's performance was behind the S&P 500's daily gain of 0.73%. Elsewhere, the Dow saw an upswing of 0.62%, while the tech-heavy Nasdaq appreciated by 0.93%.
Shares of the maker of software used to test and develop chips have appreciated by 4.46% over the course of the past month, outperforming the Computer and Technology sector's loss of 0.22% and the S&P 500's loss of 2.29%.
Analysts and investors alike will be keeping a close eye on the performance of Synopsys in its upcoming earnings disclosure. The company is expected to report EPS of $3.04, up 59.16% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.58 billion, up 23.3% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $11.09 per share and revenue of $5.83 billion. These totals would mark changes of +24.61% and +14.67%, respectively, from last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts 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.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.03% higher. Synopsys currently has a Zacks Rank of #2 (Buy).
Looking at its valuation, Synopsys is holding a Forward P/E ratio of 42.18. This signifies a premium in comparison to the average Forward P/E of 26.68 for its industry.
It's also important to note that SNPS currently trades at a PEG ratio of 2.53. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. SNPS's industry had an average PEG ratio of 2.13 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 145, positioning it in the bottom 43% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Synopsys (SNPS) Advances But Underperforms Market: Key Facts
In the latest market close, Synopsys (SNPS - Free Report) reached $468.03, with a +0.04% movement compared to the previous day. The stock's performance was behind the S&P 500's daily gain of 0.73%. Elsewhere, the Dow saw an upswing of 0.62%, while the tech-heavy Nasdaq appreciated by 0.93%.
Shares of the maker of software used to test and develop chips have appreciated by 4.46% over the course of the past month, outperforming the Computer and Technology sector's loss of 0.22% and the S&P 500's loss of 2.29%.
Analysts and investors alike will be keeping a close eye on the performance of Synopsys in its upcoming earnings disclosure. The company is expected to report EPS of $3.04, up 59.16% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.58 billion, up 23.3% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $11.09 per share and revenue of $5.83 billion. These totals would mark changes of +24.61% and +14.67%, respectively, from last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts 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.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.03% higher. Synopsys currently has a Zacks Rank of #2 (Buy).
Looking at its valuation, Synopsys is holding a Forward P/E ratio of 42.18. This signifies a premium in comparison to the average Forward P/E of 26.68 for its industry.
It's also important to note that SNPS currently trades at a PEG ratio of 2.53. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. SNPS's industry had an average PEG ratio of 2.13 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 145, positioning it in the bottom 43% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.