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Synopsys (SNPS) Rises As Market Takes a Dip: Key Facts

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Synopsys (SNPS - Free Report) closed at $557.39 in the latest trading session, marking a +0.12% move from the prior day. The stock's change was more than the S&P 500's daily loss of 0.02%. Elsewhere, the Dow lost 0.21%, while the tech-heavy Nasdaq added 0.29%.

The maker of software used to test and develop chips's stock has dropped by 0.08% in the past month, falling short of the Computer and Technology sector's gain of 1.39% and the S&P 500's gain of 1.29%.

The investment community will be closely monitoring the performance of Synopsys in its forthcoming earnings report. The company is scheduled to release its earnings on May 22, 2024. The company is predicted to post an EPS of $3.01, indicating a 18.5% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.51 billion, up 8.44% from the year-ago period.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $13.18 per share and revenue of $6.45 billion. These totals would mark changes of +17.78% and +10.33%, respectively, from last year.

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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Within the past 30 days, our consensus EPS projection remained stagnant. Right now, Synopsys possesses a Zacks Rank of #4 (Sell).

In terms of valuation, Synopsys is presently being traded at a Forward P/E ratio of 42.24. This represents a premium compared to its industry's average Forward P/E of 28.97.

Also, we should mention that SNPS has a PEG ratio of 2.41. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Computer - Software industry had an average PEG ratio of 2.4.

The Computer - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 89, placing it within the top 36% of over 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.

Ensure to harness to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

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