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Synopsys (SNPS) Surpasses Market Returns: Some Facts Worth Knowing
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Synopsys (SNPS - Free Report) ended the recent trading session at $495.25, demonstrating a +0.37% swing from the preceding day's closing price. This change outpaced the S&P 500's 0.22% gain on the day. Elsewhere, the Dow saw a downswing of 0.33%, while the tech-heavy Nasdaq appreciated by 0.76%.
Shares of the maker of software used to test and develop chips witnessed a loss of 3.32% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 2.29% and the S&P 500's gain of 1.47%.
Analysts and investors alike will be keeping a close eye on the performance of Synopsys in its upcoming earnings disclosure. The company's upcoming EPS is projected at $3.28, signifying a 3.47% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $1.62 billion, up 1.01% from the year-ago period.
SNPS's full-year Zacks Consensus Estimates are calling for earnings of $13.12 per share and revenue of $6.13 billion. These results would represent year-over-year changes of +17.25% and +4.93%, respectively.
It is also important to note the recent changes to analyst estimates for Synopsys. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
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. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Synopsys is currently sporting a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, Synopsys is holding a Forward P/E ratio of 37.62. This expresses a premium compared to the average Forward P/E of 29.32 of its industry.
We can also see that SNPS currently has a PEG ratio of 2.43. 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. As of the close of trade yesterday, the Computer - Software industry held an average PEG ratio of 2.42.
The Computer - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 63, positioning it in the top 25% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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) Surpasses Market Returns: Some Facts Worth Knowing
Synopsys (SNPS - Free Report) ended the recent trading session at $495.25, demonstrating a +0.37% swing from the preceding day's closing price. This change outpaced the S&P 500's 0.22% gain on the day. Elsewhere, the Dow saw a downswing of 0.33%, while the tech-heavy Nasdaq appreciated by 0.76%.
Shares of the maker of software used to test and develop chips witnessed a loss of 3.32% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 2.29% and the S&P 500's gain of 1.47%.
Analysts and investors alike will be keeping a close eye on the performance of Synopsys in its upcoming earnings disclosure. The company's upcoming EPS is projected at $3.28, signifying a 3.47% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $1.62 billion, up 1.01% from the year-ago period.
SNPS's full-year Zacks Consensus Estimates are calling for earnings of $13.12 per share and revenue of $6.13 billion. These results would represent year-over-year changes of +17.25% and +4.93%, respectively.
It is also important to note the recent changes to analyst estimates for Synopsys. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
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. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Synopsys is currently sporting a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, Synopsys is holding a Forward P/E ratio of 37.62. This expresses a premium compared to the average Forward P/E of 29.32 of its industry.
We can also see that SNPS currently has a PEG ratio of 2.43. 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. As of the close of trade yesterday, the Computer - Software industry held an average PEG ratio of 2.42.
The Computer - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 63, positioning it in the top 25% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.