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Synopsys (SNPS) Increases Despite Market Slip: Here's What You Need to Know

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The latest trading session saw Synopsys (SNPS - Free Report) ending at $504.86, denoting a +0.7% adjustment from its last day's close. This move outpaced the S&P 500's daily loss of 0.02%. Elsewhere, the Dow gained 0.38%, while the tech-heavy Nasdaq added 0.04%.

Prior to today's trading, shares of the maker of software used to test and develop chips had gained 1.09% over the past month. This has lagged the Computer and Technology sector's gain of 4.44% and the S&P 500's gain of 3.77% in that time.

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 $3.28 per share. This would mark year-over-year growth of 3.47%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.62 billion, up 1.01% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $13.12 per share and revenue of $6.13 billion, which would represent changes of +17.25% and +4.93%, respectively, from the prior year.

Any recent changes to analyst estimates for Synopsys should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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. Synopsys is holding a Zacks Rank of #3 (Hold) right now.

From a valuation perspective, Synopsys is currently exchanging hands at a Forward P/E ratio of 38.22. This indicates a premium in contrast to its industry's Forward P/E of 29.97.

We can also see that SNPS currently has a PEG ratio of 2.47. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. SNPS's industry had an average PEG ratio of 2.51 as of yesterday's close.

The Computer - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 64, placing it within the top 26% of over 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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