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Synopsys (SNPS) Ascends While Market Falls: Some Facts to Note
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In the latest market close, Synopsys (SNPS - Free Report) reached $501.87, with a +0.38% movement compared to the previous day. The stock's performance was ahead of the S&P 500's daily loss of 0.15%. Meanwhile, the Dow experienced a drop of 0.42%, and the technology-dominated Nasdaq saw an increase of 0.09%.
The maker of software used to test and develop chips's stock has dropped by 10.08% in the past month, falling short of the Computer and Technology sector's gain of 1.19% and the S&P 500's gain of 3.5%.
The investment community will be closely monitoring the performance of Synopsys in its forthcoming earnings report. In that report, analysts expect Synopsys to post earnings of $3.41 per share. This would mark year-over-year growth of 30.15%. Simultaneously, our latest consensus estimate expects the revenue to be $1.65 billion, showing a 20.87% escalation compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $13.41 per share and revenue of $6.61 billion. These totals would mark changes of +19.84% and +13.1%, respectively, from last year.
Investors should also pay attention to any latest changes in analyst estimates 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.13% higher. Currently, Synopsys is carrying a Zacks Rank of #3 (Hold).
Digging into valuation, Synopsys currently has a Forward P/E ratio of 37.29. This denotes a premium relative to the industry's average Forward P/E of 31.82.
It's also important to note that SNPS currently trades at a PEG ratio of 2.19. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Computer - Software industry currently had an average PEG ratio of 2.19 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 156, putting it in the bottom 39% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Synopsys (SNPS) Ascends While Market Falls: Some Facts to Note
In the latest market close, Synopsys (SNPS - Free Report) reached $501.87, with a +0.38% movement compared to the previous day. The stock's performance was ahead of the S&P 500's daily loss of 0.15%. Meanwhile, the Dow experienced a drop of 0.42%, and the technology-dominated Nasdaq saw an increase of 0.09%.
The maker of software used to test and develop chips's stock has dropped by 10.08% in the past month, falling short of the Computer and Technology sector's gain of 1.19% and the S&P 500's gain of 3.5%.
The investment community will be closely monitoring the performance of Synopsys in its forthcoming earnings report. In that report, analysts expect Synopsys to post earnings of $3.41 per share. This would mark year-over-year growth of 30.15%. Simultaneously, our latest consensus estimate expects the revenue to be $1.65 billion, showing a 20.87% escalation compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $13.41 per share and revenue of $6.61 billion. These totals would mark changes of +19.84% and +13.1%, respectively, from last year.
Investors should also pay attention to any latest changes in analyst estimates 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.13% higher. Currently, Synopsys is carrying a Zacks Rank of #3 (Hold).
Digging into valuation, Synopsys currently has a Forward P/E ratio of 37.29. This denotes a premium relative to the industry's average Forward P/E of 31.82.
It's also important to note that SNPS currently trades at a PEG ratio of 2.19. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Computer - Software industry currently had an average PEG ratio of 2.19 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 156, putting it in the bottom 39% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.