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Synopsys (SNPS) Registers a Bigger Fall Than the Market: Important Facts to Note
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Synopsys (SNPS - Free Report) closed the latest trading day at $594.20, indicating a -1.3% change from the previous session's end. This move lagged the S&P 500's daily loss of 0.14%. Meanwhile, the Dow lost 0.77%, and the Nasdaq, a tech-heavy index, added 0.17%.
The maker of software used to test and develop chips's stock has climbed by 3.63% in the past month, falling short of the Computer and Technology sector's gain of 6.81% and the S&P 500's gain of 5.34%.
Investors will be eagerly watching for the performance of Synopsys in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $3.11, reflecting a 22.44% increase from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $1.58 billion, indicating a 13.16% upward movement from the same quarter last year.
SNPS's full-year Zacks Consensus Estimates are calling for earnings of $13.56 per share and revenue of $6.61 billion. These results would represent year-over-year changes of +21.18% and +13.22%, respectively.
Any recent changes to analyst estimates for Synopsys should also be noted by investors. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 13.42% higher. Right now, Synopsys possesses a Zacks Rank of #1 (Strong Buy).
Investors should also note Synopsys's current valuation metrics, including its Forward P/E ratio of 44.39. This signifies a premium in comparison to the average Forward P/E of 31.02 for its industry.
Also, we should mention that SNPS has a PEG ratio of 2.53. 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 the market closed yesterday, the Computer - Software industry was having an average PEG ratio of 2.44.
The Computer - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 46, placing it within the top 19% of over 250 industries.
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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Synopsys (SNPS) Registers a Bigger Fall Than the Market: Important Facts to Note
Synopsys (SNPS - Free Report) closed the latest trading day at $594.20, indicating a -1.3% change from the previous session's end. This move lagged the S&P 500's daily loss of 0.14%. Meanwhile, the Dow lost 0.77%, and the Nasdaq, a tech-heavy index, added 0.17%.
The maker of software used to test and develop chips's stock has climbed by 3.63% in the past month, falling short of the Computer and Technology sector's gain of 6.81% and the S&P 500's gain of 5.34%.
Investors will be eagerly watching for the performance of Synopsys in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $3.11, reflecting a 22.44% increase from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $1.58 billion, indicating a 13.16% upward movement from the same quarter last year.
SNPS's full-year Zacks Consensus Estimates are calling for earnings of $13.56 per share and revenue of $6.61 billion. These results would represent year-over-year changes of +21.18% and +13.22%, respectively.
Any recent changes to analyst estimates for Synopsys should also be noted by investors. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 13.42% higher. Right now, Synopsys possesses a Zacks Rank of #1 (Strong Buy).
Investors should also note Synopsys's current valuation metrics, including its Forward P/E ratio of 44.39. This signifies a premium in comparison to the average Forward P/E of 31.02 for its industry.
Also, we should mention that SNPS has a PEG ratio of 2.53. 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 the market closed yesterday, the Computer - Software industry was having an average PEG ratio of 2.44.
The Computer - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 46, placing it within the top 19% of over 250 industries.
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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.