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Synopsys (SNPS) Rises As Market Takes a Dip: Key Facts
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In the latest trading session, Synopsys (SNPS - Free Report) closed at $533.08, marking a +0.77% move from the previous day. The stock exceeded the S&P 500, which registered a loss of 0.21% for the day. On the other hand, the Dow registered a loss of 0.14%, and the technology-centric Nasdaq decreased by 0.05%.
The maker of software used to test and develop chips's stock has climbed by 9.86% in the past month, exceeding the Computer and Technology sector's gain of 9.62% and the S&P 500's gain of 5.94%.
The investment community will be paying close attention to the earnings performance of Synopsys in its upcoming release. On that day, Synopsys is projected to report earnings of $3.28 per share, which would represent year-over-year growth of 3.47%. At the same time, our most recent consensus estimate is projecting a revenue of $1.62 billion, reflecting a 1.01% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $13.12 per share and revenue of $6.13 billion. These totals would mark changes of +17.25% and +4.93%, respectively, from last year.
Any recent changes to analyst estimates for Synopsys should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 remained unchanged. At present, Synopsys boasts a Zacks Rank of #3 (Hold).
In terms of valuation, Synopsys is presently being traded at a Forward P/E ratio of 40.33. This represents a premium compared to its industry's average Forward P/E of 29.68.
It is also worth noting that SNPS currently has a PEG ratio of 2.51. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Computer - Software industry currently had an average PEG ratio of 2.48 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 77, which puts it in the top 31% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Synopsys (SNPS) Rises As Market Takes a Dip: Key Facts
In the latest trading session, Synopsys (SNPS - Free Report) closed at $533.08, marking a +0.77% move from the previous day. The stock exceeded the S&P 500, which registered a loss of 0.21% for the day. On the other hand, the Dow registered a loss of 0.14%, and the technology-centric Nasdaq decreased by 0.05%.
The maker of software used to test and develop chips's stock has climbed by 9.86% in the past month, exceeding the Computer and Technology sector's gain of 9.62% and the S&P 500's gain of 5.94%.
The investment community will be paying close attention to the earnings performance of Synopsys in its upcoming release. On that day, Synopsys is projected to report earnings of $3.28 per share, which would represent year-over-year growth of 3.47%. At the same time, our most recent consensus estimate is projecting a revenue of $1.62 billion, reflecting a 1.01% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $13.12 per share and revenue of $6.13 billion. These totals would mark changes of +17.25% and +4.93%, respectively, from last year.
Any recent changes to analyst estimates for Synopsys should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 remained unchanged. At present, Synopsys boasts a Zacks Rank of #3 (Hold).
In terms of valuation, Synopsys is presently being traded at a Forward P/E ratio of 40.33. This represents a premium compared to its industry's average Forward P/E of 29.68.
It is also worth noting that SNPS currently has a PEG ratio of 2.51. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Computer - Software industry currently had an average PEG ratio of 2.48 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 77, which puts it in the top 31% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.