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Synopsys (SNPS) Stock Sinks As Market Gains: Here's Why
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The latest trading session saw Synopsys (SNPS - Free Report) ending at $494.40, denoting a -0.81% adjustment from its last day's close. The stock's performance was behind the S&P 500's daily gain of 0.08%. On the other hand, the Dow registered a loss of 0.31%, and the technology-centric Nasdaq increased by 0.02%.
The the stock of maker of software used to test and develop chips has fallen by 9.61% in the past month, lagging the Computer and Technology sector's gain of 2.68% and the S&P 500's gain of 3.52%.
The upcoming earnings release of Synopsys will be of great interest to investors. The company is expected to report EPS of $3.41, up 30.15% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $1.65 billion, indicating a 20.87% growth compared to the corresponding quarter of the prior year.
SNPS's full-year Zacks Consensus Estimates are calling for earnings of $13.41 per share and revenue of $6.61 billion. These results would represent year-over-year changes of +19.84% and +13.1%, respectively.
Investors should also take note of any recent adjustments to 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 benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.13% increase. Synopsys presently features a Zacks Rank of #3 (Hold).
In terms of valuation, Synopsys is presently being traded at a Forward P/E ratio of 37.18. For comparison, its industry has an average Forward P/E of 33.1, which means Synopsys is trading at a premium to the group.
It is also worth noting that SNPS currently has a PEG ratio of 2.18. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Computer - Software was holding an average PEG ratio of 2.23 at yesterday's closing price.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 95, putting it in the top 38% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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 Sinks As Market Gains: Here's Why
The latest trading session saw Synopsys (SNPS - Free Report) ending at $494.40, denoting a -0.81% adjustment from its last day's close. The stock's performance was behind the S&P 500's daily gain of 0.08%. On the other hand, the Dow registered a loss of 0.31%, and the technology-centric Nasdaq increased by 0.02%.
The the stock of maker of software used to test and develop chips has fallen by 9.61% in the past month, lagging the Computer and Technology sector's gain of 2.68% and the S&P 500's gain of 3.52%.
The upcoming earnings release of Synopsys will be of great interest to investors. The company is expected to report EPS of $3.41, up 30.15% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $1.65 billion, indicating a 20.87% growth compared to the corresponding quarter of the prior year.
SNPS's full-year Zacks Consensus Estimates are calling for earnings of $13.41 per share and revenue of $6.61 billion. These results would represent year-over-year changes of +19.84% and +13.1%, respectively.
Investors should also take note of any recent adjustments to 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 benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.13% increase. Synopsys presently features a Zacks Rank of #3 (Hold).
In terms of valuation, Synopsys is presently being traded at a Forward P/E ratio of 37.18. For comparison, its industry has an average Forward P/E of 33.1, which means Synopsys is trading at a premium to the group.
It is also worth noting that SNPS currently has a PEG ratio of 2.18. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Computer - Software was holding an average PEG ratio of 2.23 at yesterday's closing price.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 95, putting it in the top 38% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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.