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Synopsys (SNPS) Stock Falls Amid Market Uptick: What Investors Need to Know
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The latest trading session saw Synopsys (SNPS - Free Report) ending at $517.41, denoting a -0.13% adjustment from its last day's close. The stock fell short of the S&P 500, which registered a gain of 0.04% for the day. Elsewhere, the Dow saw an upswing of 0.14%, while the tech-heavy Nasdaq depreciated by 0.03%.
Shares of the maker of software used to test and develop chips witnessed a loss of 6.22% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 4.9% and the S&P 500's gain of 5.28%.
Analysts and investors alike will be keeping a close eye on the performance of Synopsys in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $3.41, reflecting a 30.15% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $1.65 billion, up 20.87% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $13.41 per share and a revenue of $6.61 billion, indicating changes of +19.84% and +13.1%, respectively, from the former year.
Any recent changes to analyst estimates for Synopsys should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been a 1.16% fall in the Zacks Consensus EPS estimate. At present, Synopsys boasts a Zacks Rank of #3 (Hold).
Digging into valuation, Synopsys currently has a Forward P/E ratio of 38.65. This expresses a premium compared to the average Forward P/E of 33.07 of its industry.
Investors should also note that SNPS has a PEG ratio of 2.27 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Computer - Software industry had an average PEG ratio of 2.52 as trading concluded yesterday.
The Computer - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 83, this industry ranks in the top 33% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Synopsys (SNPS) Stock Falls Amid Market Uptick: What Investors Need to Know
The latest trading session saw Synopsys (SNPS - Free Report) ending at $517.41, denoting a -0.13% adjustment from its last day's close. The stock fell short of the S&P 500, which registered a gain of 0.04% for the day. Elsewhere, the Dow saw an upswing of 0.14%, while the tech-heavy Nasdaq depreciated by 0.03%.
Shares of the maker of software used to test and develop chips witnessed a loss of 6.22% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 4.9% and the S&P 500's gain of 5.28%.
Analysts and investors alike will be keeping a close eye on the performance of Synopsys in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $3.41, reflecting a 30.15% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $1.65 billion, up 20.87% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $13.41 per share and a revenue of $6.61 billion, indicating changes of +19.84% and +13.1%, respectively, from the former year.
Any recent changes to analyst estimates for Synopsys should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been a 1.16% fall in the Zacks Consensus EPS estimate. At present, Synopsys boasts a Zacks Rank of #3 (Hold).
Digging into valuation, Synopsys currently has a Forward P/E ratio of 38.65. This expresses a premium compared to the average Forward P/E of 33.07 of its industry.
Investors should also note that SNPS has a PEG ratio of 2.27 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Computer - Software industry had an average PEG ratio of 2.52 as trading concluded yesterday.
The Computer - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 83, this industry ranks in the top 33% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.