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Synopsys (SNPS) Stock Moves -0.08%: What You Should Know

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The latest trading session saw Synopsys (SNPS - Free Report) ending at $515.61, denoting a -0.08% adjustment from its last day's close. The stock's change was more than the S&P 500's daily loss of 0.39%. Elsewhere, the Dow lost 0.27%, while the tech-heavy Nasdaq lost 0.38%.

The maker of software used to test and develop chips's shares have seen an increase of 28.25% over the last month, surpassing the Computer and Technology sector's gain of 19.26% and the S&P 500's gain of 13.07%.

Market participants will be closely following the financial results of Synopsys in its upcoming release. The company plans to announce its earnings on May 28, 2025. The company is forecasted to report an EPS of $3.39, showcasing a 13% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $1.6 billion, indicating a 10.1% growth compared to the corresponding quarter of the prior year.

SNPS's full-year Zacks Consensus Estimates are calling for earnings of $14.88 per share and revenue of $6.77 billion. These results would represent year-over-year changes of +12.73% and +7.98%, respectively.

It's also important for investors to be aware of any recent modifications to analyst estimates for Synopsys. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Synopsys is currently a Zacks Rank #3 (Hold).

Looking at valuation, Synopsys is presently trading at a Forward P/E ratio of 34.69. This denotes a premium relative to the industry's average Forward P/E of 28.6.

One should further note that SNPS currently holds a PEG ratio of 2.63. 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. The Computer - Software industry currently had an average PEG ratio of 2.4 as of yesterday's close.

The Computer - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 78, finds itself in the top 32% echelons of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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 follow all of these stock-moving metrics, and many more, on Zacks.com.


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