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Here's Why Synopsys (SNPS) Gained But Lagged the Market Today
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In the latest market close, Synopsys (SNPS - Free Report) reached $460.94, with a +0.86% movement compared to the previous day. This move lagged the S&P 500's daily gain of 1.2%. Meanwhile, the Dow gained 1.58%, and the Nasdaq, a tech-heavy index, added 1.16%.
Coming into today, shares of the maker of software used to test and develop chips had lost 0.43% in the past month. In that same time, the Computer and Technology sector lost 3.32%, while the S&P 500 lost 3.58%.
Market participants will be closely following the financial results of Synopsys in its upcoming release. The company's earnings per share (EPS) are projected to be $3.04, reflecting a 59.16% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.58 billion, indicating a 23.3% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $11.09 per share and revenue of $5.83 billion, which would represent changes of +24.61% and +14.67%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Synopsys. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
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. Within the past 30 days, our consensus EPS projection has moved 0.03% higher. Synopsys is holding a Zacks Rank of #2 (Buy) right now.
In terms of valuation, Synopsys is presently being traded at a Forward P/E ratio of 41.2. This signifies a premium in comparison to the average Forward P/E of 26.27 for its industry.
Investors should also note that SNPS has a PEG ratio of 2.47 right now. 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 average PEG ratio for the Computer - Software industry stood at 2.09 at the close of the market yesterday.
The Computer - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 86, finds itself in the top 35% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Here's Why Synopsys (SNPS) Gained But Lagged the Market Today
In the latest market close, Synopsys (SNPS - Free Report) reached $460.94, with a +0.86% movement compared to the previous day. This move lagged the S&P 500's daily gain of 1.2%. Meanwhile, the Dow gained 1.58%, and the Nasdaq, a tech-heavy index, added 1.16%.
Coming into today, shares of the maker of software used to test and develop chips had lost 0.43% in the past month. In that same time, the Computer and Technology sector lost 3.32%, while the S&P 500 lost 3.58%.
Market participants will be closely following the financial results of Synopsys in its upcoming release. The company's earnings per share (EPS) are projected to be $3.04, reflecting a 59.16% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.58 billion, indicating a 23.3% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $11.09 per share and revenue of $5.83 billion, which would represent changes of +24.61% and +14.67%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Synopsys. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
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. Within the past 30 days, our consensus EPS projection has moved 0.03% higher. Synopsys is holding a Zacks Rank of #2 (Buy) right now.
In terms of valuation, Synopsys is presently being traded at a Forward P/E ratio of 41.2. This signifies a premium in comparison to the average Forward P/E of 26.27 for its industry.
Investors should also note that SNPS has a PEG ratio of 2.47 right now. 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 average PEG ratio for the Computer - Software industry stood at 2.09 at the close of the market yesterday.
The Computer - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 86, finds itself in the top 35% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.