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Why Synopsys (SNPS) Outpaced the Stock Market Today
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In the latest market close, Synopsys (SNPS - Free Report) reached $489.94, with a +0.41% movement compared to the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.18%. Meanwhile, the Dow experienced a rise of 0.1%, and the technology-dominated Nasdaq saw an increase of 0.3%.
Prior to today's trading, shares of the maker of software used to test and develop chips had gained 3.1% over the past month. This has lagged the Computer and Technology sector's gain of 3.65% and outpaced the S&P 500's gain of 3.08% in that time.
Investors will be eagerly watching for the performance of Synopsys in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on November 29, 2023. The company is expected to report EPS of $3.04, up 59.16% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $1.58 billion, indicating a 23.3% growth compared to the corresponding quarter of the prior year.
It is also important to note the recent changes to analyst estimates for Synopsys. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.55% upward. Right now, Synopsys possesses a Zacks Rank of #1 (Strong Buy).
In the context of valuation, Synopsys is at present trading with a Forward P/E ratio of 38.96. This represents a premium compared to its industry's average Forward P/E of 26.54.
It's also important to note that SNPS currently trades at a PEG ratio of 2.33. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Computer - Software industry held an average PEG ratio of 2.27.
The Computer - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 64, finds itself in the top 26% echelons of all 250+ industries.
The Zacks Industry Rank is ordered 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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Why Synopsys (SNPS) Outpaced the Stock Market Today
In the latest market close, Synopsys (SNPS - Free Report) reached $489.94, with a +0.41% movement compared to the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.18%. Meanwhile, the Dow experienced a rise of 0.1%, and the technology-dominated Nasdaq saw an increase of 0.3%.
Prior to today's trading, shares of the maker of software used to test and develop chips had gained 3.1% over the past month. This has lagged the Computer and Technology sector's gain of 3.65% and outpaced the S&P 500's gain of 3.08% in that time.
Investors will be eagerly watching for the performance of Synopsys in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on November 29, 2023. The company is expected to report EPS of $3.04, up 59.16% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $1.58 billion, indicating a 23.3% growth compared to the corresponding quarter of the prior year.
It is also important to note the recent changes to analyst estimates for Synopsys. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.55% upward. Right now, Synopsys possesses a Zacks Rank of #1 (Strong Buy).
In the context of valuation, Synopsys is at present trading with a Forward P/E ratio of 38.96. This represents a premium compared to its industry's average Forward P/E of 26.54.
It's also important to note that SNPS currently trades at a PEG ratio of 2.33. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Computer - Software industry held an average PEG ratio of 2.27.
The Computer - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 64, finds itself in the top 26% echelons of all 250+ industries.
The Zacks Industry Rank is ordered 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.